The nexus between resource depletion, price fluctuations, and sustainable development in expenditure on resources

Abstract

The recent Inflation Reduction Act (IRA) proposals are expected to take a number of measures. These include financial incentives to improve energy efficiency, reduce pollution and increase the climate resilience of households. Furthermore, the use of natural resources (NTR) is critical in driving energy demand in industry and households. However, NTRs also play an important role in increasing carbon emissions (CO2), which can lead to various diseases. Healthcare (HLT) has complex issues such as rising costs due to inflation (INF), stalled improvements in population-wide outcomes, stalled access due to clinical staff shortages, and COVID-19 intensify. Therefore, this study aimed to investigate the effects of NTR, CO2, and INF on HLT. In addition, this study also considers short-term and long-term volatility and does so by employing an asymmetric (non-linear) ARDL model. Application of NARDL resulted in positive shocks to NTR, INF, and CO2 that increased HLT, whereas negative shocks to NTR, INF, and CO2 decreased HLT. Based on the findings, it is recommended that there is an urgent need to identify measures that can be taken to utilize the NTR best and facilitate the sustainable efforts being promoted by the IRA.