Thesis (M.Sc.) - Cairo University - Faculty of Economics and Political Science - Department of Economics

Air pollution has a negative effect on human health and which will consequently have inverse effect on country{u2019}s productivity. This study was carried to test the co-integration between air quality and Healthcare expenditures. This study used World Bank and World Health Organization data on Egypt.This analysis employs annual time series data that covers the period from 1995 {u2013} 2017 on Healthcare Expenditure (HE), Gross Domestic Product (GDP), Carbon Dioxide (CO_2), particulate matters with dimeter of 2.5 og or less and with diameter of 10 og or less (PM_2.5 and PM_10) and the total population aged 65 and above (POP65). The ARDL approach is used to check the possibilities of estimation of both short run and long run effects of air quality. The study found that GDP, PM_2.5, PM_10, POP65 had a positive significant effect on Healthcare expenditures while CO_2 had a negative significant effect in the long run in Egypt. Therefore, our findings can be used to explain the suitable healthcare expenditure level or to attain better air quality. The empirical results support using cleaner energy sources and obtain better regulation on the use of fuel

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