@article{article_1793949, title={The Impact of Carbon Dioxide Emissions on Health Expenditures in Developing Countries}, journal={Medical Research Reports}, volume={8}, pages={167–181}, year={2025}, DOI={10.55517/mrr.1793949}, author={Baş, Burak}, keywords={Carbon dioxide emissions, health expenditures, developing countries, DOLSMG}, abstract={Aim: This study aims to measure the long-run effects of changes in carbon dioxide (CO₂) emissions on total (public and private) health expenditures in twenty developing countries over the period 2000–2021. Situated at the intersection of environmental, health, and fiscal policy often sidelined in the literature it seeks to make emission-sensitive budget dynamics visible through a quantitative, cross-country–heterogeneous framework and to provide evidence-based input for policy design. Method: The dataset comprises health expenditures, CO₂ emissions, Gross Domestic Product (GDP), urbanization rate, and labor force participation. Cross-sectional dependence is assessed using the LM test; stationarity is examined with the second-generation CIPS unit root tests. Long-run relationships are verified via the Westerlund cointegration test, and slope heterogeneity is evaluated with the Pesaran–Yamagata test. Long-run coefficients and country-specific elasticities are estimated using the Pedroni Dynamic Ordinary Least Squares Mean Group (DOLSMG) estimator, which accounts for endogeneity and heterogeneity. Robustness checks include alternative weightings and sub-sample analyses. Results: Panel-average estimates indicate that a 1% increase in CO₂ emissions raises health expenditures by approximately 1.18% in the long run. Control variables behave as expected: a 1% rise in GDP increases health expenditures by about 1.39%; urbanization by 4.75%; and labor force participation by 0.38%. Marked cross-country heterogeneity emerges: Saudi Arabia, Russia, India, Türkiye, South Africa, and Vietnam display strong positive CO₂ expenditure elasticities, whereas Egypt, Pakistan, Kazakhstan, and Argentina exhibit negative coefficients. These differences are consistent with reporting practices, fiscal constraints, the breadth of health system coverage, and composition effects linked to the morbidity profile of emissions. An elasticity greater than one implies a disproportionate budgetary burden from rising emissions. Conclusion: CO₂ emissions significantly and strongly increase health expenditures in the long run. These finding positions carbon mitigation not only as an environmental objective but also as a medium-term cost-containment instrument for health policy. Policy implications include: (i) allocating carbon pricing revenues to climate-resilient health infrastructure; (ii) designing coordinated packages that pair emission control with public health investments tailored to country-specific vulnerabilities; and (iii) mitigating pollution intensity associated with urbanization through transport/housing planning and strengthening primary care. Overall, the results underscore the need for integrated, country-specific coordination between environmental policy and health budgeting.}, number={3}, publisher={M. Tayyib KADAK}, organization={No financial support was received from any individual, institution, or organization for the conduct or publication of this study.}