The effect of environmental quality and economic growth on the health expenditure in the MENA region

In this study with macro approach, to assess the relationship between health expenditure and environmental quality in the MENA region were discussed during the years 2012-1995. First, using the model Panel Vector Auto Regression (PVAR), the causal relationship between variables was evaluated and the results showed that a bidirectional causal relationship between the variables under study. In the following, Using the Co-integration analysis in panel data, short and long term relationship between Per capita health expenditure, per capita income, per capita carbon dioxide emissions, access to sanitation facilities and safe drinking water were assessed. The results of this research confirmed direct and significant relation between improving environmental quality and public health. Income elasticity of health expenditure in the long term greater than one and in the short term was less than one. Thus health goods and services for the MENA region are in the long-term and short-term respectively Luxury and Essential goods.