The nexus between carbon emission, energy use, and health expenditure: empirical evidence from Bangladesh

Abstract

Bangladesh is facing a conundrum in figuring out how to improve public health while simultaneously reducing the environmental pollution. To alleviate the pressure from the high healthcare expenditure in Bangladesh, environmental management efforts to improve the quality of the environment need to be developed with the help of understanding the nexus between carbon emission, energy use, and health expenditure. In a society that is experiencing quick and difficult environmental problems due to rising energy demand, the current study focused on evaluating the effects of carbon dioxide emissions, fossil fuel energy use, and renewable energy use on health expenditure in Bangladesh. Time series data were analyzed from the year 2000 to 2020 using the Dynamic Ordinary Least Squares technique. The findings revealed that a 1% increase in carbon dioxide emissions and fossil fuel energy use will increase health expenditure by 0.95% and 2.67%, respectively. Furthermore, a 1% increase in renewable energy use may result in reduced health expenditure by 1.44% in the long run. This article provides policy recommendations to ensure environmental sustainability and healthcare facilities by lowering carbon emission in Bangladesh. This research would be helpful for designing a proactive health scheme to counteract the emerging health consequences of environmental pollution in Bangladesh.Graphical