The nexus between health status and health expenditure, energy consumption and environmental pollution: empirical evidence from SAARC-BIMSTEC regions
Mohammad Mafizur Rahman, Khosrul Alam
Abstract
BACKGROUND: The COVID-19 pandemic has highlighted the need for the betterment of health status, while also considering health expenditure, energy, and environmental issues. This paper examines the nexus between health status and health expenditure (both public and private), energy consumption and environmental pollution in the SAARC-BIMSTEC region. METHODS: We utilized the panel autoregressive distributed lag (ARDL) model, the heterogeneous panel causality test, the cross sectional dependence test, the cointegration test and the Pesaran cross sectional dependent (CADF) unit root test for obtaining estimated results from data over 16 years (2002-2017). RESULTS: Our results authorize the cointegration among the variables used, where the coefficients of energy consumption, public and private health expenditures, and economic growth are 0.027, 0.014, 0.030, and 0.029, respectively, and indicating positive and statistically significant effects. The coefficient of environmental pollution is - 0.085, implying significant negative effect on the health status of these regions in the long-run. However, no panel wise significant impact is found in the short-run. Bidirectional and unidirectional causal links between the studied variables and the health status are also identified.. CONCLUSIONS: The improved health status in the SAARC-BIMSTEC region needs to be protected by articulating the effective policies. The attained results are theoretically and empirically consistent, and have important policy implications in the health sector.