A plausible explanation for the negative correlation between environmental degradation and healthcare expenditure

Publication Name

Applied Economics Letters

Abstract

This article provides a plausible explanation for the seemingly counterintuitive observation that healthcare expenditure can be negatively correlated with environmental degradation, measured by CO2 emissions. A mathematical proof is presented to demonstrate that the relation between expenditure and degradation may be positive or negative, depending on the position of the underlying country or region on the environmental Kuznets curve. This proposition is confirmed by a diagrammatic exposition and a simulation exercise.

Open Access Status

This publication is not available as open access

Volume

28

Issue

16

First Page

1377

Last Page

1381

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Link to publisher version (DOI)

http://dx.doi.org/10.1080/13504851.2020.1817843