Relationship between Emissions of Carbon Dioxide from the Cement Industry, Health Expenditures and Economic Growth in Pakistan

  • Syed Imran Rais University of Wah
  • Abdul Mansoor University of Wah
  • Noman Ahmed University of Wah
  • Syed Tahir Hussain Shah University of Wah
  • Baserat Sultana University of Wah
Keywords: CO2 emissions, Health expenditures, Cement industry, ARDL, Pakistan

Abstract

Carbon Dioxide emissions are not suitable for human health, and it also creates hurdles in the economic growth of any economy. The current study aims to reinvestigate the impact of greenhouse gases like CO2 emissions, including other gases, in the cement industry of Pakistan and its outcome in the shape of an increase in the health expenditures of the citizens. The study employs the ARDL methodology to find the empirical results in the short and long run. For the empirical analysis, the study used time-series data from the WDI database and covered the range from 1990 to 2019. The study finds a strong relationship between CO2 emissions from the cement industry, health expenditures, and economic growth in Pakistan. There is a uni-directional causality running from CO2 emission to health expenses in both the short and long run. The present study makes a significant contribution to the literature on industrial economics and energy economics and its effects on the well-being of people in society. The study explains the changes in the health expenditures of people by considering the emission of CO2 from the cement industry, which is a new dimension in the case of Pakistan. Moreover, the study suggested that the government and policymakers should make environment-friendly and eco-friendly policies to clean the environment for better health and high economic growth. The government should encourage investors to invest in green technology to increase production capacity and improve the environment.

Author Biographies

Syed Imran Rais, University of Wah

Assistant Professor,

Department of Economics,

University of Wah, Pakistan

Abdul Mansoor, University of Wah

Lecturer,

Department of Economics,

University of Wah, Pakistan

Noman Ahmed, University of Wah

M.Phil. Scholar,

Department of Economics,

University of Wah, Pakistan

Syed Tahir Hussain Shah, University of Wah

Lecturer,

Department of Economics,

University of Wah, Pakistan

Baserat Sultana, University of Wah

Lecturer,

Department of Economics,

University of Wah, Pakistan

Published
2021-09-30
How to Cite
Rais, S., Mansoor, A., Ahmed, N., Shah, S. T., & Sultana, B. (2021). Relationship between Emissions of Carbon Dioxide from the Cement Industry, Health Expenditures and Economic Growth in Pakistan. IRASD Journal of Economics, 3(2), 133 - 142. https://doi.org/10.52131/joe.2021.0302.0031