De-carbonising Asia: Examining the linkages between Consumption Emissions, Healthcare Spending and Renewable Energy Transition

Abstract

This study examines the impact of healthcare on carbon emissions, economic growth and renewable energy adoption in Asian economies, utilising panel data from 2000 to 2019. The research employs a comprehensive set of econometric techniques, including first and second-generation unit root tests (ADF, PP, CADF, CIPS), co-integration tests (Wester Lund, Kao), and estimation methods (FMOLS, DOLS). Key findings reveal a positive long-term relationship between carbon emissions and healthcare spending, while highlighting the environmental consequences of decades of rapid, energy-intensive economic growth. The study identifies air quality as a crucial factor in the relationship between environmental conditions and population health in densely populated areas. Interestingly, Southeast Asia presents a unique case where increased healthcare expenditure correlates with improved carbon efficiency. The research concludes by emphasising the need for more effective regulations to mitigate carbon emissions and ensure a sustainable future, underscoring the complex interplay between economic development, environmental impact, and public health in Asian economies.