Journal of Accounting and Management Vision

Journal of Accounting and Management Vision

Investigating the relationship between the environmental degradation index (emissions) and the share of private sector health spending in Iran: Application of ridge regression

Document Type : Original Article

Author
Master of Economics - Economic Development and Planning, University of Tabriz, Tabriz, Iran
Abstract
Environmental changes, including global warming, water resource depletion, and air pollution, directly and indirectly affect human physical and mental health and increase health costs. These changes, in addition to the spread of infectious diseases and mental disorders, increase the financial burden on the health system. The present study aimed to investigate the relationship between the environmental degradation index (carbon dioxide emissions) and the share of private sector health costs in Iran during the years 2000 to 2022, using the ridge regression method. The results showed a positive effect of climate change (with a coefficient of 0.009044) on private health costs.Due to environmental changes such as global warming, reduced rainfall and other climate changes, various types of diseases have become prevalent, which has increased private health-related costs. In addition to this finding, variables such as GDP per capita growth and population growth have had a positive effect on private sector costs with coefficients of 0.090084 and 0.32415, respectively. Inflation has also had a negative effect on private sector costs with a coefficient of 0.05543
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