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

Document Type : Research Paper

Author

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

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, the geriatric population is exposed 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 on healthcare. This study investigates the effect of income, population ageing, and environmental quality on healthcare expenditure in OPEC member countries from 2000 to 2020 using the panel data method. According to the results, urbanization, life expectancy, and population ageing, as well as increased disability and underlying maladies, increase the demand for medical care and the associated costs. Also, the elasticity of healthcare expenditure based on GDP per capita is less than one. Therefore, health services are considered essential 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 threatens the financial and healthcare systems of the government.

Keywords

Main Subjects

References

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Iranian Economic Review
Volume 29, Issue 4
December 2025
Pages 1186-1204

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