IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2023-05-16.html
   My bibliography  Save this article

The Impact of Environmental Performance on Economic Growth: A Study of ASEAN Countries

Author

Listed:
  • Rini Lestari

    (Department of Accounting, Faculty of Economics and Business, Universitas Islam Bandung, Bandung, Indonesia,)

  • Boyke Rahmat Ramdani

    (Department of Accounting, Faculty of Economics and Business, Universitas Islam Bandung, Bandung, Indonesia,)

  • Pupung Purnamasari

    (Department of Accounting, Faculty of Economics and Business, Universitas Islam Bandung, Bandung, Indonesia,)

  • N. Nurfahmiyati

    (Department of Development Economics, Faculty of Economics and Business, Universitas Islam Bandung, Bandung, Indonesia.)

Abstract

The aim of this study is to explore the effect of environmental performance on economic growth, the effect of environmental performance on health expenditure, the effect of health expenditure on economic growth, and the role of health expenditure in mediating the effect of environmental performance on economic growth. The study uses a quantitative research method with a verification approach and utilizes secondary data from the World Bank Indicator. Purposive sampling has been used in this study, and the sample involved countries from the ASEAN region. The statistical analysis tool used in this study is EViews version 12. The results indicate that environmental performance has an impact on economic growth, that environmental performance affects health expenditure, that health expenditure has an impact on economic growth, and that health expenditure can mediate the impact of environmental performance on economic growth. According to the study's findings, ASEAN companies must reduce the environmental damage caused by their activities in order to improve their environmental performance, which will help boost economic growth in ASEAN countries.

Suggested Citation

  • Rini Lestari & Boyke Rahmat Ramdani & Pupung Purnamasari & N. Nurfahmiyati, 2023. "The Impact of Environmental Performance on Economic Growth: A Study of ASEAN Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 132-138, September.
    • Handle: RePEc:eco:journ2:2023-05-16
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/14508/7457
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/14508
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Amaryllis Mavragani & Ioannis E. Nikolaou & Konstantinos P. Tsagarakis, 2016. "Open Economy, Institutional Quality, and Environmental Performance: A Macroeconomic Approach," Sustainability, MDPI, vol. 8(7), pages 1-13, June.
    2. Irfan Ullah & Alam Rehman & Farman Ullah Khan & Muhammad Haroon Shah & Faridoon Khan, 2020. "Nexus between trade, CO2 emissions, renewable energy, and health expenditure in Pakistan," International Journal of Health Planning and Management, Wiley Blackwell, vol. 35(4), pages 818-831, July.
    3. Charfeddine, Lanouar, 2017. "The impact of energy consumption and economic development on Ecological Footprint and CO2 emissions: Evidence from a Markov Switching Equilibrium Correction Model," Energy Economics, Elsevier, vol. 65(C), pages 355-374.
    4. Hbib Sekrafi & Asma Sghaier, 2018. "Examining the Relationship Between Corruption, Economic Growth, Environmental Degradation, and Energy Consumption: a Panel Analysis in MENA Region," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(3), pages 963-979, September.
    5. Serge Mandiefe Piabuo & Julius Chupezi Tieguhong, 2017. "Health expenditure and economic growth - a review of the literature and an analysis between the economic community for central African states (CEMAC) and selected African countries," Health Economics Review, Springer, vol. 7(1), pages 1-13, December.
    6. Marwa Sahnoun, 2018. "Does Health Expenditure Increase Economic Growth: Evidence from Tunisia," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 21(67), pages 126-144, March.
    7. Muhammad Haseeb & Sebastian Kot & Hafezali Iqbal Hussain & Kittisak Jermsittiparsert, 2019. "Impact of Economic Growth, Environmental Pollution, and Energy Consumption on Health Expenditure and R&D Expenditure of ASEAN Countries," Energies, MDPI, vol. 12(19), pages 1, September.
    8. Muhammad Awais Anwar & Ghulam Rasool Madni & Iftikhar Yasin, 2021. "Environmental quality, forestation, and health expenditure: a cross-country evidence," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(11), pages 16454-16480, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dobdinga C. Fonchamnyo & Etoh-Anzah P. Angyie & Nges S. Afumbom & Gildas D. Dinga & Simplice A. Asongu, 2022. "Structural Change, Environmental Pollution and Health Expenditure: Evidence from a Global Panel," Working Papers of the African Governance and Development Institute. 22/071, African Governance and Development Institute..
    2. Yilmaz Bayar & Marius Dan Gavriletea & Mirela Oana Pintea & Ioana Cristina Sechel, 2021. "Impact of Environment, Life Expectancy and Real GDP per Capita on Health Expenditures: Evidence from the EU Member States," IJERPH, MDPI, vol. 18(24), pages 1-14, December.
    3. Mahmut Unsal Sasmaz & Aysun Karamıklı & Ulas Akkucuk, 2021. "The relationship between renewable energy use and health expenditures in EU countries," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 22(7), pages 1129-1139, September.
    4. Mohammed AlKhars & Fazlul Miah & Hassan Qudrat-Ullah & Aymen Kayal, 2020. "A Systematic Review of the Relationship Between Energy Consumption and Economic Growth in GCC Countries," Sustainability, MDPI, vol. 12(9), pages 1-43, May.
    5. Syed Abdul Rehman Khan & Danish Iqbal Godil & Muhammad Umer Quddoos & Zhang Yu & Muhammad Hanif Akhtar & Zijing Liang, 2021. "Investigating the nexus between energy, economic growth, and environmental quality: A road map for the sustainable development," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(5), pages 835-846, September.
    6. Liu, Yaping & Sadiq, Farah & Ali, Wajahat & Kumail, Tafazal, 2022. "Does tourism development, energy consumption, trade openness and economic growth matters for ecological footprint: Testing the Environmental Kuznets Curve and pollution haven hypothesis for Pakistan," Energy, Elsevier, vol. 245(C).
    7. Zhenjiao Chen & Yaqing Liu, 2020. "The Effects of Leadership and Reward Policy on Employees’ Electricity Saving Behaviors: An Empirical Study in China," IJERPH, MDPI, vol. 17(6), pages 1-15, March.
    8. Hayat Khan & Liu Weili & Itbar Khan, 2022. "Environmental innovation, trade openness and quality institutions: an integrated investigation about environmental sustainability," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(3), pages 3832-3862, March.
    9. Asaph Kaburura Katarangi & Frederick Nsambu Kijjambu & Benjamin Musiita, 2024. "Does Investment in Human Capital Offset Oil Dependence? Unveiling the Drivers of Unemployment in Uganda," Journal of Economics and Behavioral Studies, AMH International, vol. 16(1), pages 67-81.
    10. Sy-Hoa Ho & Rim Oueghlissi & Riadh El Ferktaji, 2024. "Testing for Causality Between Economic Growth and Environmental, Social, and Governance Performance: New Evidence from a Global Sample," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 7769-7787, June.
    11. Özlem Karadağ Albayrak & Samet Topal & Serhat Çamkaya, 2022. "The Impact of Economic Growth, Renewable Energy, Non-renewable Energy and Trade Openness on the Ecological Footprint and Forecasting in Turkiye: an Case of the ARDL and NMGM Forecasting Model," Alphanumeric Journal, Bahadir Fatih Yildirim, vol. 10(2), pages 139-154, December.
    12. Li, Menghan & Zhang, Kaiyue & Alamri, Ahmad Mohammed & Ageli, Mohammed Moosa & Khan, Numan, 2023. "Resource curse hypothesis and sustainable development: Evaluating the role of renewable energy and R&D," Resources Policy, Elsevier, vol. 81(C).
    13. Raad Al-Tal & Alaaeddin Al-Tarawneh, 2021. "The Impact of Government Effectiveness and Political Stability on Energy Consumption in the Selected MENA Economies," International Journal of Energy Economics and Policy, Econjournals, vol. 11(2), pages 1-6.
    14. Shakoor Ahmed & Khorshed Alam & Afzalur Rashid & Jeff Gow, 2020. "Militarisation, Energy Consumption, CO2 Emissions and Economic Growth in Myanmar," Defence and Peace Economics, Taylor & Francis Journals, vol. 31(6), pages 615-641, August.
    15. Ansari, Mohd Arshad, 2022. "Re-visiting the Environmental Kuznets curve for ASEAN: A comparison between ecological footprint and carbon dioxide emissions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    16. Ming Zhong & Jingjing Yu & Syed Anees Haider Zaidi, 2024. "Investigating the Impact of Financial Inclusion on Energy Consumption: Does Corruption Matter?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 8797-8814, June.
    17. N.M. Odhiambo, 2021. "Health Expenditure and Economic Growth in Sub-Saharan Africa: An Empirical Investigation," Working Papers AESRI-2021-05, African Economic and Social Research Institute (AESRI), revised Jan 2021.
    18. Minhaj Ali & Shujahat Haider Hashmi & Yasir Habib & Dervis Kirikkaleli, 2024. "The asymmetric impact of public–private partnership investment in energy on CO2 emissions in Pakistan," Energy & Environment, , vol. 35(4), pages 2131-2150, June.
    19. Juste Som¨¦ & Selsah Pasali & Martin Kaboine, 2019. "Exploring the Impact of Healthcare on Economic Growth in Africa," Applied Economics and Finance, Redfame publishing, vol. 6(3), pages 45-57, May.
    20. Karaaslan, Abdulkerim & Çamkaya, Serhat, 2022. "The relationship between CO2 emissions, economic growth, health expenditure, and renewable and non-renewable energy consumption: Empirical evidence from Turkey," Renewable Energy, Elsevier, vol. 190(C), pages 457-466.

    More about this item

    Keywords

    ASEAN; Economic Growth; Environmental Performance; Health Expenditure; Quantitative Research Method;
    All these keywords.

    JEL classification:

    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2023-05-16. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.