The Nexus between CO2 Emissions and Health Expenditure – Causality Evidence from Selected CEE Countries

Mehmet Bölükbaş; Agata Szymańska

doi:10.18778/1508-2008.28.15

Authors

Mehmet Bölükbaş Aydın Adnan Menderes University, Faculty of Political Science, Department of Economics https://orcid.org/0000-0002-9770-069X
Agata Szymańska University of Lodz, Institute of Economics https://orcid.org/0000-0001-5184-931X

DOI:

https://doi.org/10.18778/1508-2008.28.15

Keywords:

causality, CO2 emissions, health expenditure, Central and Eastern European countries, quality of life

Abstract

Greenhouse gas emissions, primarily carbon dioxide (CO₂), influence climate change and have a significant impact on public health. The relationship is a subject of interest to many researchers. However, the situation of Central and Eastern European (CEE) countries is not sufficiently explored in this context. Thus, this study examines the linkages between CO₂ emissions and health expenditures in 11 CEE countries. The empirical findings obtained using Kónya’s bootstrap panel Granger causality test show that CO₂ emissions and health expenditures are related in most CEE countries. Notably, a bidirectional relationship in the bootstrap panel Granger causality test is found for Croatia, Romania, and Slovakia. In contrast, the relationship was revealed to be insignificant in Bulgaria, Lithuania, Poland, and Slovenia. The results are significant and contribute to the existing literature. The findings allow us to issue policy recommendations to intensify efforts to control pollution, particularly CO₂ emissions, especially in Croatia, Romania, and Slovakia, as well as in the countries where at least unidirectional effects from CO₂ emissions to health expenditures were observed (e.g., Estonia, Hungary, and Latvia).

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