Examining the dynamic impact of carbon emissions, renewable energy and economic growth on healthcare expenditure in Asian countries

Abstract

This study aims to examine the impact of renewable energy, carbon emissions, and economic growth on healthcare spending in 36 Asian countries during 2000-2019. Fully Modified Ordinary Least Square (FMOLS) and Dynamic Ordinary Least Square (DOLS) models have been applied to the panel data for 36 Asian countries. The study's findings show that CO₂ emissions in Asia increased due to public and private health spending, with the commercial health sector having a larger negative influence on CO₂ emissions than the public sector. According to FMOLS and DOLS findings, carbon emissions and GDP are positively related to health spending, indicating that high economic growth through energy-intensive production processes leads to increased carbon emissions, but on the contrary, renewable energy consumption has decreased healthcare expenditure. This study advocates new policies to reduce carbon emissions and hospitalisation without jeopardising national economic growth. In order to achieve sustainable health services and an environmentally friendly future in Asia, health administrators must raise state and private healthcare spending while implementing an effective cost-service and energy-efficient management plan.

Keywords: Asian economies; CO2 emissions; Economic growth; FMOLS and DOLS; Health expenditure; Renewable energy.