Effects of Environmental Degradation, Economic, and Demographic Variables on Life Expectancy: Panel Data Analysis for High-Income Countries

Life expectancy is one of the most significant variables that reflect countries’ welfare levels. This study aims to investigate the effects of environmental degradation, economic conditions, and demographic factors on average life expectancy in 10 high-income countries (i.e., Canada, Belgium, England, Germany, Austria, Spain, Sweden, France, Italy, and the USA). The study covers the 2000-2019 period and has selected CO2 emissions, infant mortality rates, unemployment rates, and share of public health expenditures in current health expenditures as the indicators. The study uses the panel data analysis method, first analyzing the countries together and then individually. When examining the countries together, a 1% increase in infant mortality has been determined to lead to a 0.111% decrease in life expectancy, whereas CO2 emissions have no effect on life expectancy. When analyzing the countries separately, a 1% increase in CO2 emissions was observed to reduce life expectancy in Canada, Spain, France, Italy, and Sweden. Reduced unemployment rates and an increased share of public health expenditures were seen to positively affect average life expectancy in England. Moreover, increased CO2 emissions were seen to negatively affect life expectancy in France. Meanwhile, a 1% increase in unemployment in Canada leads to a 0.034% increases in life expectancy, while a 1% increase in the infant mortalityrate causes a 0.239% decrease in life expectancy. As a result, increasing the share of public health expenditures in current health expenditures and decreasing unemployment rates have been concluded to positively affect average life expectancy in high-income countries. Policymakers in high-income countries are expected to focus on environmentally friendly policies that reduce CO2 emissions and increase health expenditures and employment in the coming years; as this in turn will contribute to positive developments in life expectancy. In addition, social policies that reduce infant mortality rates, especially for babies born of a mother going through puberty, may lead to improvements in life expectancy in high-income countries. These findings can be used to contribute to policy makers in high-income countries developing further comprehensive measurements.