Balancing economic growth and environmental health: The role of healthcare and renewable energy in the inflation Prevention

Abstract

The increasing effects of global warming require prompt action to be taken in order to mitigate the destruction of the environment. To reduce carbon dioxide emissions by 40% in the following decade, the Inflation Reduction Act (IRA) was adopted in 2022. We must work to reduce inflation and promote ecological sustainability. Natural resource (NTR), healthcare (HLT) and renewable energy (REC) usage should be carefully examined in our goal to achieve ecological sustainability since they are important components of the IRA. Therefore, using a Dynamic Autoregressive Distributed Lag Model (DYNARDL), this research aims to investigate how these three factors contribute to sustainability. Findings from the DYNARDL system show that NTR and HLT are responsible for a depressing amount of environmental degradation. REC shows great potential in fostering sustainability. The findings emphasize the significance of renewable energy in reducing greenhouse gas emissions, showing that a 1% rise in REC generates a 4% drop in CO₂ emissions. In contrast, there is a positive association between NTR and CO₂ emissions; for every 1% rise in NTR consumption, emissions rise by 15.7%, and HLT emissions rise by 19.7%. Results like these highlight the importance of stronger regulations for resource management and more funding for renewable energy sources. In light of these results, it is suggested that the IRA be better implemented. Both environmental and economic well-being would reap the rewards of this. According to the goals outlined in the Act, if deployment were to be effective, it would help bring the costs of protecting the environment into equilibrium with the advantages that it would provide to the economy.