Examining the Impact of Income, Population Ageing and Environmental Quality on Healthcare Expenditure in OPEC Member Countries

Articles in Press

Document Type : Research Paper

Author

Faculty of Economics and Political Sciences, Shahid Beheshti University, Tehran, Iran

10.22059/ier.2024.366514.1007824

Abstract

The rising cost of healthcare in countries poses a growing threat to the sustainability of healthcare systems and the fiscal stability of governments. As a result of economic development, increased life expectancy, population ageing and decline in environmental quality exposes the geriatric population to air pollution for an extended period of time. This increases the demand for medical services and long-term care, as well as the increased expenditure of healthcare. This study investigates the effect of income, population ageing and environmental quality on healthcare expenditure in OPEC member countries from 2000 to 2020 with panel data method. According to the results, urbanization, life expectancy and population ageing as well as increased disability and underlying maladies increases the demand for medical care and the associated costs. Also, the elasticity of healthcare expenditure based on GDP per capita is less than one. So, health services are necessary goods in OPEC member countries. In addition, the decline in environmental quality and the long-term exposure of the elderly population to air pollution have led to increased healthcare expenditure that threaten the financial and healthcare systems of the government.

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Iranian Economic Review

Articles in Press, Accepted Manuscript
Available Online from 12 February 2024

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