The long and short-term effects of environmental quality on healthcare expenditure: An empirical analysis of MENA countries

Abstract

This study examined air pollution and its implications for human health through a cointegrated panel analysis of data from MENA countries over the period 2000-2020. The central objective was to explore the correlation between air quality, focusing on two of its major components - CO2 emissions and ambient air pollution - and health expenditure and the economy. The findings clearly establish that CO2 and PM2.5 are significant risk factors leading to a sustained increase in per capita healthcare expenditure in the region. It is therefore recommended that these countries pay particular attention to shifting subsidies from fossil fuels to renewable energies to promote a healthier environment. In addition, the introduction of costs linked to the consumption of fossil fuels, particularly through a carbon tax, specifically in electricity production, is seen as crucial in encouraging the private sector to invest in green energy projects.