Dynamic relationship between energy efficiency, health expenditure and economic growth: in pursuit for SDGs in Malaysia

Hylmee Matahir, Jain Yassin, Herniza Roxanne Marcus, Nur Aima Shafie and Nor Farizal Mohammed

International Journal of Ethics and Systems, 2022, vol. 39, issue 3, 594-611

Abstract: Purpose - This paper aims to examine the dynamic relationship among energy efficiency, health expenditure and economic growth in Malaysia over the sample period of 1980–2016. Design/methodology/approach - This study uses autoregressive distributed lag cointegration analysis and the causality approach by the vector error correction model to analyse the relationship among energy efficiency, which is proxied by energy intensity and the determinant factors. Findings - The findings of this paper suggest long-run cointegration causal links between economic growth and health expenditure. However, a mixed conclusion for both determinants exists: an increase in real income contributes to more efficient use of energy sources, whereas an increase in government spending on health intensifies energy usage. Originality/value - Most previous relevant research has focussed on energy efficiency as measured by economic intensity and economic growth and do not relate to the issue of health expenditure. The recent health catastrophe brought on by the COVID-19 epidemic emphasises the significance of allocating more resources to health care. The findings will be helpful in the development of energy efficiency and economic policies in pursuit of sustainable development goals.

Keywords: Energy efficiency; Health expenditure; Economic growth; Malaysia; Granger causality; Sustainable development goals (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijoesp:ijoes-12-2021-0239

DOI: 10.1108/IJOES-12-2021-0239

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