Linkages between Trade, CO 2 Emissions and Healthcare Spending in China

Irfan Ullah, Sher Ali, Muhammad Haroon Shah, Farrah Yasim, Alam Rehman and Basheer M. Al-Ghazali
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Irfan Ullah: Reading Academy, Nanjing University of Information Science and Technology, Nanjing 210044, China
Sher Ali: Department of Economics, Islamia College University, Peshawar 25120, Pakistan
Muhammad Haroon Shah: School of Finance, Zhongnan University of Economics and Law, Wuhan 430073, China
Farrah Yasim: Department of Economics, Government Emerson College, Multan 60000, Pakistan
Alam Rehman: Faculty of Management Sciences, National University of Modern Languages, Islamabad 44000, Pakistan
Basheer M. Al-Ghazali: Department of Business Administration, Dammam Community College, King Fahd University of Petroleum and Minerals, Dhahran 31261, Saudi Arabia

IJERPH, 2019, vol. 16, issue 21, 1-15

Abstract: China has remained top among the carbon dioxide (CO 2 ) emitting countries in the world, while it has a significant contribution to world trade after World Trade Organization (WTO) reforms in China. The dramatic increase in CO 2 emissions has been witnessed. This study examines the linkages between trade openness, CO 2 emissions, and healthcare expenditures in China using time series data for the period 1990–2017. The study extended a theoretical model by adding healthcare expenditures, CO 2 emissions, and trade openness with some constraints. We used simultaneous equation method for the analysis, and the outcomes suggest that trade is significantly affecting the CO 2 emissions in the country, resulting in an increase of healthcare expenditures. The government needs reforms and trade policy embodied green energy consumption in the industrial sector, especially in export sector industries. In addition, carbon tax may be an important tool to reduce CO 2 emissions and it may compensate the healthcare spending in the country.

Keywords: trade openness; CO 2 emissions; healthcare spending; China (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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