Relationship between health spending, life expectancy and renewable energy in China: A new evidence from the VECM approach

Abstract

There has been a growing trend in health spending and renewable energy consumption in China over the past few decades, which has positive implications for health outcomes, such as life expectancy. Therefore, the main objective of this study is to empirically analyze the impact of health expenditures and renewable energy on life expectancy in China. We used the time series data from 2000Q1 to 2020Q4 and applied the VECM approach for the data analysis. The results of this study suggest a long run association between health spending, life expectancy and renewable energy. The increase in health spending improves life expectancy, while renewable energy consumption also positively affects life expectancy in China. Therefore, the government should allocate sufficient funding to the health sector in order to attain higher life expectancy in the country. In addition, the government should also provide incentives for the consumption and production of renewable energy, which could help to achieve the sustainable development goal and life expectancy.