Abstract
The rapid increase of greenhouse gas (GHG) emissions has become a significant impact on health and environment around the globe. Although the impact between economic development and health expenditure has been previously examined, but the influence of GHG emissions on medical spending, particularly in East Asia and the Pacific is underresearched. The goal is to examine the impact of GHG emissions and gross domestic product (GDP) on health expenditures in East Asia, Southeast Asia, and the Pacific Islands from 2000 to 2021. The primary objective is to assess how GHG and GDP affect health expenditures both in the short-run and long-run causality. Using cointegration analysis, the study finds that economic growth and GHG emissions play an important part in driving the increase in health expenditures. Also, notable regional differences in health expenditure and emissions are observed, with East Asia experiencing higher levels compared to Southeast Asia and the Pacific Islands. These findings highlighted the link between GDP growth, environmental health risks, and health costs that emphasizes the need for integrated policy strategies to lessen the global climate change impacts and encourage sustainable growth in the East Asia and the Pacific. These strategies are essential for fostering long-term development and balanced growth, ensuring a healthier and more sustainable environment for future generations.
Keywords: Cointegration Analysis, Economic Growth, Greenhouse Gas Emissions, Gross Domestic Product, Health Expenditure.