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Climate change, natural disasters, and healthcare expenditures in South Asia

Sadoon HanifDepartment of Economics, University of Haripur, Haripur, 22620, Khyber Pakhtunkhwa, PakistanRazia SultanaCollege of Business, Al Yamamah University, Riyadh, Saudi ArabiaKamran AzamInstitute of Management Sciences, The University of Haripur, Haripur, 22620, Khyber Pakhtunkhwa, PakistanAqil Waqar KhanUniversity of Stirling, Ras Al Khaimah (RAK) Campus, Ras Al Khaimah, UAEIhtisham ul HaqDepartment of Econometrics, Tashkent State University of Economics, Tashkent, UzbekistanKhalid ZamanDepartment of Economics, University of Haripur, Haripur, 22620, Khyber Pakhtunkhwa, Pakistan
2026en
ABI

Annotatsiya

Environmental concerns have become a major factor in South Asian healthcare expenditure; understanding the dynamics of climate, energy, investment, and adaptability is crucial. Climate change, natural disasters, fossil fuel use, FDI, and ecosystem-based adaptation affected healthcare expenditure in the selected South Asian countries from 2000 to 2022. The study uses a panel Autoregressive Distributed Lag (ARDL) estimator and Method of Moments Quantile Regression (MMQR) to capture short- and long-term dynamics and ensure robustness. The results show that environmental deterioration and catastrophic occurrences are increasing the health burden, and natural disasters and fossil fuel use strain healthcare systems, particularly in the short run. Ecosystem-based adaptation raises healthcare costs, demonstrating that resilience and preventive efforts require more funding but improve public health capacity over time. Healthcare expenditure decreases with FDI, conceivably due to efficiency gains, technology spillovers, and improved facilities. The negative relationship between carbon emissions and healthcare expenditure shows that South Asian adaptation mechanisms are context-specific and that health responses are delayed, rather than a worldwide drop in climate-related risks. Climate resilience, sustainable energy transitions, and ecosystem-based solutions must be included in healthcare planning to support environmentally sustainable and inclusive development.

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