The role of government healthcare financing in carbon emissions and climate change

ABSTRACT

Government financing among OPEC+ countries predominantly stems from oil investments. However, given the global prevalence of communicable and non-communicable diseases, aging, population growth, and pandemic mutations, these countries require more oil investments to finance healthcare, with potential adverse consequence on carbon emissions and climate change. This study aims to investigate the relationship between government healthcare financing and carbon emissions and climate change and propose solutions for greener healthcare financing. Quantitative data from 2000 to 2020 were extracted from the WHO and Global Economy databases. The relationship of four variables indicating government healthcare financing to government budget, to total healthcare financing, to GDP, and per-capita with oil investment were investigated using a multiple regression analysis. The analysis included the world’s ten oil-producing countries with the highest oil revenue to GDP. The results showed significant relationships between government healthcare financing to total healthcare financing, to GDP, and per-capita with oil investment among most of the included countries, thereby demonstrating the substantial contribution of OPEC+ to carbon emissions and climate change. The predominant dependence of OPEC+ on oil for financing, with no tangible future transition insight, should make them persistent contributors to carbon emissions and climate change given the considerable publicly financed part of their healthcare systems and the world’s changeable healthcare needs. Thus, oil-dependent countries should strive to free their healthcare financing from oil investment with the environmental harm that this coupling incurs and adopt transformative strategies that expedite the transition to net-zero carbon emissions.

Highlights

Oil-dependent countries boost oil investments to meet global healthcare demands, which could negatively affect carbon emissions and climate change.

The relationship between government healthcare financing and oil investment in OPEC+ countries was investigated.

Most countries and variables showed associations between government healthcare financing and oil investment.

OPEC+ appeared to significantly contribute to carbon emissions and climate change.

KEYWORDS:

• carbon emissions
• climate changes
• OPEC+
• healthcare financing

JEL CLASSIFICATION:

• H51
• H61
• H72
• H75
• I18

View correction statement:

Correction

Highlights

• Oil-dependent countries boost oil investments to meet global healthcare demands, which could negatively affect carbon emissions and climate change.

• The relationship between government healthcare financing and oil investment in OPEC+ countries was investigated.

• Most countries and variables showed associations between government healthcare financing and oil investment.

• OPEC+ appeared to significantly contribute to carbon emissions and climate change.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Data availability statement

All data have been included in this manuscript, and more data can be found in the Global Health Expenditure Database of the World Health Organization. Any additional data can be provided upon request.

Public interest statement

This study investigates the relationship between government healthcare financing and carbon emissions and climate change in OPEC+ countries. Multiple regression analysis was conducted on quantitative data covering the 2000–2020 period and extracted from the WHO and Global Economy databases. Government healthcare financing to total healthcare financing, GDP, and per-capita showed a significant relationship with oil investment among most of the countries included. This oil dependence makes these countries persistent contributors to carbon emissions and climate change. This study urges to utilize different sources of financing and adopt transformative strategies to expedite the transition to net-zero carbon emissions.

Additional information

Funding

This work did not receive any external funding.

Notes on contributors

Salem Al Mustanyir

Dr. Salem Al Mustanyir, senior economist and business intelligence expert, with previous experience in different companies, universities, and public organizations at national and international levels at departments of research, strategy, accounting, finance, investment, insurance and risk management. Dr. Al Mustanyir research activities focus on health economics, financing, policy impact assessment, economic of data, energy and labor market, smart cities, investment in artificial intelligence, and building public and private performance indices.