LINKAGES AMONG CARBON DIOXIDE (CO2) EMISSION, HEALTH SPENDING AND ECONOMIC GROWTH: A STUDY SAARC MEMBER COUNTRIES

The present world is on the good track to achieve economic growth though it results in huge environmental degradation. Hence, such economic growth poses serious detrimental impacts on human health, and it causes to increase in healthcare spending. Therefore, the present study aims to depict the relationship among carbon dioxide (CO2) emission, healthcare spending and economic growth for the South Asian countries (SAARC member countries) covering the period 1980-2014. The Dynamic Simultaneous-equation Model is fitted with the data set which is estimated by Generalized Method of Moment for investigating the causal relationship among these variables. The empirical results reveal bidirectional causality between carbon dioxide (CO2) emission and economic growth; and between economic growth and health spending. The results of the study also indicate unidirectional causality from carbon dioxide (CO2) and health spending in case of many SAARC member countries.