Is There a Relationship between CO2 Emissions and Health Expenditures? Evidence from BRICS-T Countries

Abstract

One of the most important indicators of deterioration in environmental quality is the increase in carbon dioxide emissions. Increasing carbon dioxide emissions negatively affect the health of individuals and lead to the emergence of a number of chronic diseases. The most significant cost of chronic diseases which reduces employee productivity is the impact on health expenditures. The purpose of this study is to investigate the relationship between carbon dioxide emissions and health expenditures for BRICS-T countries (Brazil, Russia, India, China, South Africa, and Turkey) over the period 2000-2016. The panel causality test developed by Kónya (2006) was used as the method. Based on the empirical results, it was found that there is a unidirectional positive causal relationship running from carbon dioxide emissions to health expenditures in China. In the other selected countries, no such relationship has been identified.