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Impact of human health on economic growth under the constraint of environment pollution

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  • Zhao, Jinkai
  • Zhou, Na

Abstract

On the basis of considering the impact of environment pollution on human health, this paper expands and constructs a four-sector endogenous economic growth model including production, research and development, human capital cultivation and resource development, and reveals the affects of human health on economic growth under the constraint of environment pollution. Through static analysis it is found that the irrational allocation of physical capital and human capital will affect the scale of resource utilization and trigger an unsustainable economic growth model. Under the circumstance that the proportion of human capital invested in the production sector remains unchanged, a decline in physical capital investment will increase resource consumption. Under the condition of a certain proportion of physical capital investment, the decline in the share of human capital invested in the production sector will also cause the economy to consume a large amount of non-renewable resources and form an unsustainable development model. The parameter simulation results show that there is a threshold for the effectiveness of the human health investment share on economic growth; according to the development stage, the economy can adjust the investment share of education and health in a timely manner to maximize economic growth. Inspired by theoretical analysis, this paper reinterprets the driving force and source of China's economic from the perspective of human health utilizing common panel model and spatial panel model. In addition to the static analysis, this paper also makes a dynamic analysis of China's economic growth with the help of Cobb-Douglas production function. It is found that China’s economic growth relies on physical capital investment and energy consumption, and insufficient reliance on human capital (including education and human health).

Suggested Citation

  • Zhao, Jinkai & Zhou, Na, 2021. "Impact of human health on economic growth under the constraint of environment pollution," Technological Forecasting and Social Change, Elsevier, vol. 169(C).
    • Handle: RePEc:eee:tefoso:v:169:y:2021:i:c:s0040162521002602
    DOI: 10.1016/j.techfore.2021.120828
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