Impact of Renewable Energy Consumption and Health Expenditure on Air Pollutants: Implications for Sustainable Development in ASEAN Countries

Abstract

This study examined the association between economic development and environmental degradation in the presence of health expenditure and renewable energy for selected 6 ASEAN nations covering the time span of 2000 to 2018. Before estimating the model, firstly check the stationary of variables for this purpose Levin Lin Chu unit root applied, results indicate that all variables are stationary at level. GMM is efficient in eliminating fixed/random effects in the model and also overcome the problem of endogeneity in the model. For causal analysis used Granger causality test and results indicates that there exists a bi-directional association among the consumption of energy and carbon emission. There exits uni-directional association exists among Economic development, expenditure on health and environmental degradation. GMM results indicate that spending on the health sector and the consumption of renewable energy sectors decline the environmental degradation level; on the other hand, economic growth boosts the ASEAN nations' carbon emission level. The recommendation of the study is to increase the level of economic development by enhancing the energy sector from non-renewable energy to renewable energy because it boosts the level of economic growth, which ultimately improve the health development and technologies which will strengthen the health facilities in the nation and also reduce the level of carbon production that helps to keep the environment healthy and clean.

Keywords

• Carbon dioxide emissions
• Renewable energy consumption
• Health expenditures
• Dynamic GMM
• ASEAN countries