A Dynamic Relationship between Environmental Degradation, Healthcare Expenditure and Economic Growth in Wavelet Analysis: Empirical Evidence from Taiwan
Abstract
:1. Introduction
2. Literature Review
2.1. Environment and Economic Growth
2.2. Economic Growth and Health Expenditures
2.3. Environment and Health Expenditures
3. Wavelet Analysis
3.1. The Continuous Wavelet Transform
3.2. The Wavelet Power Spectrum
3.3. The Wavelet Coherency and Phase Difference
3.4. Data
4. Empirical Results and Discussions
5. Conclusions
Author Contributions
Funding
Acknowledgments
Conflicts of Interest
References
- Brauer, M.; Amann, M.; Burnett, R.T.; Cohen, A.; Dentener, F.; Ezzati, M.; Henderson, S.B.; Krzyzanowski, M.; Martin, R.V.; Van Dingenen, R.; et al. Exposure Assessment for Estimation of the Global Burden of Disease Attributable to Outdoor Air Pollution. Environ. Sci. Technol. 2012, 46, 652–660. [Google Scholar] [CrossRef] [PubMed] [Green Version]
- Kampa, M.; Castanas, E. Human health effects of air pollution. Environ. Pollut. 2008, 151, 362–367. [Google Scholar] [CrossRef] [PubMed]
- Dominici, F.; McDermott, A.; Daniels, M.; Zeger, S.L.; Samet, J.M. Mortality among Residents of 90 Cities. Special Report: Revised Analyses of Time-Series Studies of Air Pollution and Health. 2003, pp. 9–24. Available online: https://www.researchgate.net/profile/Antonella_Zanobetti/publication/230651495_Mortality_and_morbidity_among_eldery_residents_of_cities_with_daily_PM_measurements/links/00b7d513f5ce2f4197000000/Mortality-and-morbidity-among-eldery-residents-of-cities-with-daily-PM-measurements.pdf#page=19 (accessed on 14 February 2020).
- Pope, C.A., III; Burnett, R.T.; Thurston, G.D.; Thun, M.J.; Calle, E.E.; Krewski, D.; Godleski, J.J. Cardiovascular mortality and long-term exposure to particulate air pollution: Epidemiological evidence of general pathophysiological pathways of disease. Circulation 2004, 109, 71–77. [Google Scholar] [CrossRef] [PubMed] [Green Version]
- Shahadin, M.S.; Mutalib, N.S.A.; Latif, M.T.; Greene, C.M.; Hassan, T. Challenges and future direction of molecular research in air pollution-related lung cancers. Lung Cancer 2018, 118, 69–75. [Google Scholar] [CrossRef] [PubMed]
- Islam, A.M.; Lopez, R.E. Government Spending and Air Pollution in the US. Int. Rev. Environ. Resour. Econ. 2015, 8, 139–189. [Google Scholar] [CrossRef]
- Fuchs, V.R. (Ed.) Economic Aspects of Health; University of Chicago Press: Chicago, IL, USA, 1982. [Google Scholar]
- Albulescu, C.T.; Oros, C.; Tiwari, A.K. Is there any convergence in health expenditures across EU countries? Econ. Bull. 2017, 37, 2095–2101. [Google Scholar]
- Chen, W.-Y. Health progress and economic growth in the USA: The continuous wavelet analysis. Empir. Econ. 2015, 50, 831–855. [Google Scholar] [CrossRef]
- Liu, Y.-H.; Chang, W.-S.; Chen, W.-Y. Health progress and economic growth in the United States: The mixed frequency VAR analyses. Qual. Quant. 2019, 53, 1895–1911. [Google Scholar] [CrossRef]
- Yazdi, S.K.; Khanalizadeh, B. Air pollution, economic growth and health care expenditure. Economic Research-Ekonomska Istraživanja 2017, 30, 1181–1190. [Google Scholar] [CrossRef] [Green Version]
- Matthew, O.; Osabohien, R.; Fasina, F.; Fasina, A. Greenhouse gas emissions and health outcomes in Nigeria: Empirical insight from ardl technique. Int. J. Energy Econ. Policy 2018, 8, 43–50. [Google Scholar]
- Moosa, N.; Pham, H.N. The Effect of Environmental Degradation on the Financing of Healthcare. Emerg. Mark. Financ. Trade 2019, 55, 237–250. [Google Scholar] [CrossRef]
- Grossman, G.M.; Krueger, A.B. Economic Growth and the Environment. Q. J. Econ. 1995, 110, 353–377. [Google Scholar] [CrossRef] [Green Version]
- Aung, T.S.; Saboori, B.; Rasoulinezhad, E. Economic growth and environmental pollution in Myanmar: An analysis of environmental Kuznets curve. Environ. Sci. Pollut. Res. 2017, 24, 20487–20501. [Google Scholar] [CrossRef]
- Cai, Y.; Sam, C.Y.; Chang, T. Nexus between clean energy consumption, economic growth and CO2 emissions. J. Clean. Prod. 2018, 182, 1001–1011. [Google Scholar] [CrossRef]
- Ben Jebli, M.; Ben Youssef, S.; Ozturk, I. Testing environmental Kuznets curve hypothesis: The role of renewable and non-renewable energy consumption and trade in OECD countries. Ecol. Indic. 2016, 60, 824–831. [Google Scholar] [CrossRef]
- Pata, U.K. Renewable energy consumption, urbanization, financial development, income and CO2 emissions in Turkey: Testing EKC hypothesis with structural breaks. J. Clean. Prod. 2018, 187, 770–779. [Google Scholar] [CrossRef]
- Peng, H.; Tan, X.; Li, Y.; Hu, L. Economic Growth, Foreign Direct Investment and CO2 Emissions in China: A Panel Granger Causality Analysis. Sustainability 2016, 8, 233. [Google Scholar] [CrossRef] [Green Version]
- Environmental Protection Administration. Yearbook of Environmental Protection Statistics Republic of China; Environmental Protection Administration: Taibei, Taiwan, 2018.
- Statistics of Transportation and Communications. Number of Registered Motor Vehicles; Department of Statistics, Ministry of Transportation and Communications, (MOTC): Taipei, Taiwan, 2019.
- Chiang, T. Taiwan’s 1995 health care reform. Health Policy 1997, 39, 225–239. [Google Scholar] [CrossRef]
- Chaabouni, S.; Zghidi, N.; Ben Mbarek, M. On the causal dynamics between CO2 emissions, health expenditures and economic growth. Sustain. Cities Soc. 2016, 22, 184–191. [Google Scholar] [CrossRef]
- Chaabouni, S.; Saidi, K. The dynamic links between carbon dioxide (CO2) emissions, health spending and GDP growth: A case study for 51 countries. Environ. Res. 2017, 158, 137–144. [Google Scholar] [CrossRef]
- Apergis, N.; Gupta, R.; Lau, C.K.M.; Mukherjee, Z. U.S. state-level carbon dioxide emissions: Does it affect health care expenditure? Renew. Sustain. Energy Rev. 2018, 91, 521–530. [Google Scholar] [CrossRef] [Green Version]
- Halicioglu, F. An econometric study of CO2 emissions, energy consumption, income and foreign trade in Turkey. Energy Policy 2009, 37, 1156–1164. [Google Scholar] [CrossRef] [Green Version]
- Wang, K.-M. Health care expenditure and economic growth: Quantile panel-type analysis. Econ. Model. 2011, 28, 1536–1549. [Google Scholar] [CrossRef]
- Ayuba, A.J. The relationship between public social expenditure and economic growth in Nigeria: An empirical analysis. Int. J. Financ. Acct. 2014, 3, 185–191. [Google Scholar]
- Lu, Z.-N.; Chen, H.; Hao, Y.; Wang, J.; Song, X.; Mok, T.M. The dynamic relationship between environmental pollution, economic development and public health: Evidence from China. J. Clean. Prod. 2017, 166, 134–147. [Google Scholar] [CrossRef]
- ArrayExpress—A Database of FUNCTIONAL Genomics Experiments. Available online: http://www.ebi.ac.uk/arrayexpress/ (accessed on 12 November 2012).
- Beatty, T.K.; Shimshack, J.P. Air pollution and children’s respiratory health: A cohort analysis. J. Environ. Econ. Manag. 2014, 67, 39–57. [Google Scholar] [CrossRef]
- Chaabouni, S.; Abednnadher, C. The determinants of health expenditures in Tunisia: An ARDL bounds testing approach. Int. J. Inf. Syst. Serv. Sector (IJISSS) 2014, 6, 60–72. [Google Scholar] [CrossRef]
- Mehrara, M.; Sharzei, G.; Mohaghegh, M. The Relationship between Health Expenditure and Environmental Quality in Developing Countries. J. Health Adm. 2011, 14, 79–88. [Google Scholar]
- Aguiar-Conraria, L.; Azevedo, N.; Soares, M.J. Using wavelets to decompose the time–frequency effects of monetary policy. Phys. A Stat. Mech. Appl. 2008, 387, 2863–2878. [Google Scholar] [CrossRef] [Green Version]
- Roueff, F.; Von Sachs, R. Locally stationary long memory estimation. Stoch. Process. Appl. 2011, 121, 813–844. [Google Scholar] [CrossRef] [Green Version]
- Grinsted, A.; Moore, J.C.; Jevrejeva, S. Application of the cross wavelet transform and wavelet coherence to geophysical time series. Nonlinear Process. Geophys. 2004, 11, 561–566. [Google Scholar] [CrossRef]
- Loh, L. Co-movement of Asia-Pacific with European and US stock market returns: A cross-time-frequency analysis. Res. Int. Bus. Financ. 2013, 29, 1–13. [Google Scholar] [CrossRef]
- Caraiani, P. Money and output: New evidence based on wavelet coherence. Econ. Lett. 2012, 116, 547–550. [Google Scholar] [CrossRef]
- Rua, A. Money Growth and Inflation in the Euro Area: A Time-Frequency View. Oxf. Bull. Econ. Stat. 2012, 74, 875–885. [Google Scholar] [CrossRef] [Green Version]
- Torrence, C.; Compo, G. A practical guide to wavelet analysis. Bull. Am. Meteorol. Soc. 1998, 79, 61–78. [Google Scholar] [CrossRef] [Green Version]
- Daubechies, I. Ten Lectures on Wavelets; Society for Industrial and Applied Mathematics (SIAM): Philadelphia, PA, USA, 1992; Volume 61. [Google Scholar]
- Goupillaud, P.; Grossmann, A.; Morlet, J. Cycle-octave and related transforms in seismic signal analysis. Geoexploration 1984, 23, 85–102. [Google Scholar] [CrossRef]
- Hudgins, L.; Friehe, C.; Mayer, M. Wavelet transforms and atmospheric turbulence. Phys. Rev. Lett. 1993, 71, 3279–3282. [Google Scholar] [CrossRef]
- Bloomfield, D.S.; McAteer, R.T.J.; Lites, B.W.; Judge, P.G.; Mathioudakis, M.; Keenan, F.P. Wavelet Phase Coherence Analysis: Application to a Quiet-Sun Magnetic Element. Astrophys. J. 2004, 617, 623–632. [Google Scholar] [CrossRef] [Green Version]
- Voiculescu, M.; Usoskin, I. Persistent solar signatures in cloud cover: Spatial and temporal analysis. Environ. Res. Lett. 2012, 7, 044004. [Google Scholar] [CrossRef] [Green Version]
- Aguiar-Conraria, L.; Soares, M.J. The continuous wavelet transform: Moving beyond uni- and bivariate analysis. J. Econ. Surv. 2013, 28, 344–375. [Google Scholar] [CrossRef]
- Tiwari, A.K.; Mutascu, M.; Andrieș, A.M. Decomposing time-frequency relationship between producer price and consumer price indices in Romania through wavelet analysis. Econ. Model. 2013, 31, 151–159. [Google Scholar] [CrossRef]
- Ghali, K.H. Government size and economic growth: Evidence from a multivariate cointegration analysis. Appl. Econ. 1998, 31, 975–987. [Google Scholar] [CrossRef]
- Cheng, T.-M. Taiwan’s New National Health Insurance Program: Genesis And Experience So Far. Health Aff. 2003, 22, 61–76. [Google Scholar] [CrossRef] [Green Version]
- Hsu, M.-H.; Yeh, Y.-T.; Chen, C.-Y.; Liu, C.-H.; Liu, C.-T. Online detection of potential duplicate medications and changes of physician behavior for outpatients visiting multiple hospitals using national health insurance smart cards in Taiwan. Int. J. Med. Inform. 2011, 80, 181–189. [Google Scholar] [CrossRef]
- Chen, S.-T.; Lee, C.-C. Government size and economic growth in Taiwan: A threshold regression approach. J. Policy Model. 2005, 27, 1051–1066. [Google Scholar] [CrossRef]
- Armey, R.K. The Freedom Revolution: The New Republican House Majority Leader Tells Why Big Government Failed, Why Freedom Works, and How We Will Rebuild America; Regnery Publishing: Washington, DC, USA, 1995. [Google Scholar]
- Vedder, R.K.; Gallaway, L.E. Government Size and Economic Growth; Joint Economic Committee: Washington, DC, USA, 1998. [Google Scholar]
- Bajo-Rubio, O. A further generalization of the Solow growth model: The role of the public sector. Econ. Lett. 2000, 68, 79–84. [Google Scholar] [CrossRef] [Green Version]
- Bergh, A.; Karlsson, M. Government size and growth: Accounting for economic freedom and globalization. Public Choice 2010, 142, 195–213. [Google Scholar] [CrossRef] [Green Version]
- Fölster, S.; Henrekson, M. Growth effects of government expenditure and taxation in rich countries. Eur. Econ. Rev. 2001, 45, 1501–1520. [Google Scholar] [CrossRef] [Green Version]
- Afonso, A.; Furceri, D. Government size, composition, volatility and economic growth. Eur. J. Political Econ. 2010, 26, 517–532. [Google Scholar] [CrossRef] [Green Version]
- Barro, R.J. Economic Growth in a Cross Section of Countries. Q. J. Econ. 1991, 106, 407. [Google Scholar] [CrossRef] [Green Version]
- Afonso, A.; Jalles, J.T. Economic Performance and Government Size. Available online: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1950570 (accessed on 30 January 2020).
- Frederik, C.; Lundström, S. Political and Economic Freedom and The Environment: The Case of CO2 Emissions; Department of Economics, Göteborg University: Göteborg, Sweden, 2000. [Google Scholar]
- Barro, R.J. Health and Economic Growth. Ann. Econ. Financ. Soc. AEF 2013, 14, 329–366. [Google Scholar]
- World Health Organization. Macroeconomics and Health: Investing in Health For Economic Development; World Health Organization: Geneva, Switzerland, 2001. [Google Scholar]
© 2020 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/).
Share and Cite
Wu, C.-F.; Li, F.; Hsueh, H.-P.; Wang, C.-M.; Lin, M.-C.; Chang, T. A Dynamic Relationship between Environmental Degradation, Healthcare Expenditure and Economic Growth in Wavelet Analysis: Empirical Evidence from Taiwan. Int. J. Environ. Res. Public Health 2020, 17, 1386. https://0-doi-org.brum.beds.ac.uk/10.3390/ijerph17041386
Wu C-F, Li F, Hsueh H-P, Wang C-M, Lin M-C, Chang T. A Dynamic Relationship between Environmental Degradation, Healthcare Expenditure and Economic Growth in Wavelet Analysis: Empirical Evidence from Taiwan. International Journal of Environmental Research and Public Health. 2020; 17(4):1386. https://0-doi-org.brum.beds.ac.uk/10.3390/ijerph17041386
Chicago/Turabian StyleWu, Cheng-Feng, Fangjhy Li, Hsin-Pei Hsueh, Chien-Ming Wang, Meng-Chen Lin, and Tsangyao Chang. 2020. "A Dynamic Relationship between Environmental Degradation, Healthcare Expenditure and Economic Growth in Wavelet Analysis: Empirical Evidence from Taiwan" International Journal of Environmental Research and Public Health 17, no. 4: 1386. https://0-doi-org.brum.beds.ac.uk/10.3390/ijerph17041386