Energy, environmental degradation, and health status: evidence from South Asia

Abstract

Energy is considered a vital factor of economic growth that contributes to improve quality of life and health status. However, global warming, climate change, and environmental degradation are due primarily because of energy emissions, whereas environmental degradation is detrimental to health. Since one-fifth of the population lives in South Asia, it is necessary to analyze the impact of energy and environmental degradation on health status in this region. For this purpose, health status in South Asia is proxy with health expenditure, life expectancy, and infant mortality, and this study investigates the effect of energy intensity, income, and carbon emissions on health status, whereas urbanization is considered a control variable. The cointegration test indicates South Asia's long-term health status factors are energy intensity, income, carbon emissions, and urbanization. Long-run results suggest that energy intensity and income improve health status as these factors reduce health expenditure, improve life expectancy, and decrease infant mortality. Environmental degradation not only increases health expenditure but also hinders life expectancy and increases mortality. Moreover, an increase in income diminishes health expenditure and is responsible for high life expectancy and low mortality in South Asia.

Keywords: Economic growth; Energy; Environmental degradation; Health expenditure; Life expectancy; Mortality; South Asia.