Environmental Quality and Health Status: Dynamic Ordinary Least Square Estimation for Developing Asian Countries

Abstract

The present study attempts to estimate the long-run relationship between health and environmental quality indicators along with other explanatory variables by using a balanced panel data for 20 developing Asian countries. Levin-Lin-Chu (LLC) and Im, Pesaran and Shin (IPS) unit root tests are employed for analyzing the panel unit root properties of data. Dynamic Ordinary Least Square (DOLS) is used to obtain the long-run estimates. The Carbon Dioxide (CO2) emission, Sulphur Dioxide (SO2) emission, and Particulate Matter (PM2.5) concentrations are used as environmental quality variables. Three models are estimated to assess the relationship between environmental quality and health. Life expectancy at birth is used as a proxy of health. The environmental quality indicators are negatively associated with health status showing an adverse effect on health. This means that air pollution is worsening human health in developing Asian countries. Per capita GDP is positively associated with health indicators in all models. Moreover, the urban population, access to improved sanitation facilities, and immunization are positively related to population health. These all variables are positively contributing to the improvement in public health. However, the effect of urban population is insignificant in the case of PM2.5. The effect of health expenditures on life expectancy is positive and statistically significant in the case of CO2, SO2 emissions, and PM2.5 concentrations. It shows a positive contribution of health expenditures towards improving life expectancy.