Interrelationship between Income, Health and Environment : In a Case of Malaysia

This paper examines the link between health indicators and the environmental variables withn a country widely dispersed on the economic development spectrum. While environment and income are seen to have an inverted-U shaped relationship (Environmental Kuznets Curve (EKC) hypothesis), it is also...

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Main Author: Abdul Samad, Abdul Rahim
Format: Project Paper Report
Language:English
English
Published: 2005
Subjects:
Online Access:http://psasir.upm.edu.my/id/eprint/6079/
http://psasir.upm.edu.my/id/eprint/6079/1/FEP_2005_12%281-24%29.pdf
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author Abdul Samad, Abdul Rahim
author_facet Abdul Samad, Abdul Rahim
author_sort Abdul Samad, Abdul Rahim
building UPM Institutional Repository
collection Online Access
description This paper examines the link between health indicators and the environmental variables withn a country widely dispersed on the economic development spectrum. While environment and income are seen to have an inverted-U shaped relationship (Environmental Kuznets Curve (EKC) hypothesis), it is also well established that environment and health are positively related. The main point of the study focuses on the implications of the relationship between health and income. In the early phases of income growth, the gains in health and the losses in environmental quality could cancel each other out and this challenges the idea that as incomes increase health would always improve. To empirically analyse these issues, the estimation of two-stage least squares model that focuses on the impact of income and the environment on health status, with environment being an endogenous variable is done. The results show that the environmental stress variable has a significant negative effect on health status. At the same time, gross national product (GNP) levels are shown to vary positively with health status. The Environmental Kuznet Curve is not found in this study, instead, it is found that the health gains obtained through improved incomes can be negated to a significant extent if the indirect effect of income acting via the environment is ignored. Research findings in this regard would be a useful policy instrument towards maximizing both the environmental and health gains that come with economic growth and development.
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spelling upm-60792013-05-27T07:27:00Z http://psasir.upm.edu.my/id/eprint/6079/ Interrelationship between Income, Health and Environment : In a Case of Malaysia Abdul Samad, Abdul Rahim This paper examines the link between health indicators and the environmental variables withn a country widely dispersed on the economic development spectrum. While environment and income are seen to have an inverted-U shaped relationship (Environmental Kuznets Curve (EKC) hypothesis), it is also well established that environment and health are positively related. The main point of the study focuses on the implications of the relationship between health and income. In the early phases of income growth, the gains in health and the losses in environmental quality could cancel each other out and this challenges the idea that as incomes increase health would always improve. To empirically analyse these issues, the estimation of two-stage least squares model that focuses on the impact of income and the environment on health status, with environment being an endogenous variable is done. The results show that the environmental stress variable has a significant negative effect on health status. At the same time, gross national product (GNP) levels are shown to vary positively with health status. The Environmental Kuznet Curve is not found in this study, instead, it is found that the health gains obtained through improved incomes can be negated to a significant extent if the indirect effect of income acting via the environment is ignored. Research findings in this regard would be a useful policy instrument towards maximizing both the environmental and health gains that come with economic growth and development. 2005-04 Project Paper Report NonPeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/6079/1/FEP_2005_12%281-24%29.pdf Abdul Samad, Abdul Rahim (2005) Interrelationship between Income, Health and Environment : In a Case of Malaysia. [Project Paper Report] Health - Environmental aspects - Malaysia - Case studies Health - Economic aspects - Malaysia - Case studies English
spellingShingle Health - Environmental aspects - Malaysia - Case studies
Health - Economic aspects - Malaysia - Case studies
Abdul Samad, Abdul Rahim
Interrelationship between Income, Health and Environment : In a Case of Malaysia
title Interrelationship between Income, Health and Environment : In a Case of Malaysia
title_full Interrelationship between Income, Health and Environment : In a Case of Malaysia
title_fullStr Interrelationship between Income, Health and Environment : In a Case of Malaysia
title_full_unstemmed Interrelationship between Income, Health and Environment : In a Case of Malaysia
title_short Interrelationship between Income, Health and Environment : In a Case of Malaysia
title_sort interrelationship between income, health and environment : in a case of malaysia
topic Health - Environmental aspects - Malaysia - Case studies
Health - Economic aspects - Malaysia - Case studies
url http://psasir.upm.edu.my/id/eprint/6079/
http://psasir.upm.edu.my/id/eprint/6079/1/FEP_2005_12%281-24%29.pdf