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The Link between Economic Growth, Air Pollution and Health Expenditure in the G7 Countries

Author

Listed:
  • Rihem Zeiri

    (Doctoral Student and Researcher, Faculty of Economics and Management of Sousse, Tunisia,)

  • Aida Bouzir

    (Higher Institute of Transport and Logistics of Sousse, Tunisia,)

  • Mohamed H di Benhadj Mbarek

    (Higher Institute of Transport and Logistics of Sousse, Tunisia,)

  • Saloua Benammou

    (Faculty of Economics and Management of Sousse, Tunisia.)

Abstract

The objective of this paper is to study the effect of economic growth and pollution on health expenditure in G7 countries, during the 1990-2020. In order to obtain a reliable estimate, we adopt the partial least squares (PLS) regression method, which focuses on three explanatory indicators (GDP, CO2, MR) and health expenditure (HE), as a dependent variable. The obtained empirical results reveal several important elements. First, all the models are significant, with the exception of Canada. Then, all countries have verified the economic theory that GDP positively affects HE. Then, we observe negative effects of CO2 emissions on HE, except in Japan. Finally, France, Italy, the United States and the United Kingdom have negative effects of MR on HE.

Suggested Citation

  • Rihem Zeiri & Aida Bouzir & Mohamed H di Benhadj Mbarek & Saloua Benammou, 2023. "The Link between Economic Growth, Air Pollution and Health Expenditure in the G7 Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 156-168, July.
    • Handle: RePEc:eco:journ2:2023-04-18
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    More about this item

    Keywords

    Economic Growth; Health Expenditure; CO2 Emissions; Partial Least Squares;
    All these keywords.

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General

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