Interrelations of Current Health Expenditure and Fertilizer Consumption in European Countries: Step-by-Step to Sustainable Agricultural Practices

Abstract

This research explores interrelations between fertilizer consumption and health expenditure in European countries examining how agricultural practices impact public health costs through pollution-related risks. Use of fertilizers, particularly nitrogen-based ones, is linked to environmental pollution (such as nitrate contamination in water and greenhouse gas emissions), which has well-documented health impacts. This study aims to investigate whether higher levels of fertilizer consumption correlate with increased healthcare spending, reflecting the economic burden of pollution-related health conditions. Via panel data from 37 European countries between 2006 and 2021, the panel regression analysis with the Fixed Effect, Random Effect, and Pooling Models is applied to evaluate relationships between fertilizer consumption and health expenditure per capita and as a percentage of GDP. The Fixed Effect Model, supported by the Hausman test, was ultimately selected for its ability to control for country-specific factors. The results indicate that higher fertilizer use is associated with increased health expenditure per capita, underscoring the economic impact of pollution-related illnesses. Additionally, food import shares show a positive association with health expenditure. It suggests that reliance on imported food might contribute to higher healthcare costs due to potential health risks from imported food quality. The export share effect on health expenditure is more complex, with mixed results across models, indicating both potential economic benefits and environmental health costs. These findings emphasize need for sustainable agricultural policies that balance productivity with public health. By revealing the financial implications of intensive fertilizer use, this research underscores the importance of integrating preventative measures (such as minimizing fertilizer run-off and promoting eco-friendly farming practices) into policy frameworks. This study provides critical data to support the European Green Deal and Sustainable Development Goals.

Keywords

• fertilizer consumption
• health expenditure
• panel regression analysis
• public health
• sustainable agriculture