Effects of air pollution and monetary policy on health expenditure with a sustainable development approach in the European Union

Demographic, social, and economic factors, along with financing arrangements and the organizational structure of the health system, shape a country's health expenditure and its evolution over time. The COVID-۱۹ pandemic had a significant impact on Europe’s health expenditure in ۲۰۲۰. This study aims to examine the effects of air pollution and monetary policy on healthcare expenditure in European countries within the framework of sustainable development during the COVID-۱۹ crisis. To achieve this, spatial panel models are used to analyze the ۲۰۰۵–۲۰۲۰ panel data of ۲۷ countries. The results indicate that the average air pollution index negatively affects healthcare expenditure. In contrast, GNI, Broad Money (M۳), CPI, and the Death rate positively impact healthcare expenditure. Based on these empirical findings, if EU governments aim to guide the expansion of the healthcare system through a more government-driven monetary policy, they should revise their air pollution regulations accordingly.

کلیدواژه ها:

Air pollution ، monetary policy ، Health expenditure ، Spatial panel data model