Abstract

One of the most important discoveries in human history is fossil fuels and their utilization. Energy sources such as oil, natural gas, and coal are defined as fossil fuels. The devastating destruction of fossil fuels, especially for human health and the environment, has become remarkable in recent years. Every year, thousands of people suffer from diseases related to air pollution, and their treatment is expensive and long-term. This situation leads to difficult and time-consuming health problems as well as increased health expenditures. In this study, it is emphasized that both cheap and natural methods should be used and made widespread in the fight against harmful gases. An example of this struggle is the "Land Use, Land Use Change, and Forestry" activities called LULUCF. Although previous studies have enriched our understanding of LULUCF, no study has directly examined the relationship between LULUCF and emissions and health expenditures. To overcome this shortcoming, this paper establishes a comprehensive analytical framework to systematically estimate the decoupling between the variables. Using an ARDL bounds testing model estimated for the period 1990–2022, this paper aims to examine the impact of emissions including LULUCF and emissions excluding LULUCF on health expenditure for OECD countries. The empirical evidence shows that emissions have a significant and positive impact on health expenditures in both cases. However, with the exception of LULUCF, the impact of emissions on health expenditures is larger. This result may be an alternative option for policymakers to combat health problems and spend on environmental impacts.

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