The Relationship between CO2 Emissions, Health Expenditures, Tax Revenues and Educational Attainment in the Czech Republic: A Policy Perspective

Abstract

To achieve sustainable development, it is required to implement a comprehensive plan that considers the interplay between CO emissions, educational attainment, current health expenditure, and tax revenue. This paper examines the complex connections using data from the Czech Republic gathered by the World Bank from 2000 to 2016. The findings of the VAR/VECM study demonstrate a direct correlation between CO2 emissions and healthcare expenditure, suggesting that higher levels of pollution are associated with increased medical costs. This study emphasizes the necessity of implementing policies that prioritize long-term goals, even in cases where there is no statistically significant relationship between educational achievement and short-term carbon dioxide emissions or tax income. Investing in schools enhances environmental awareness among individuals, perhaps resulting in reduced emissions over time. Sufficient investment for healthcare is necessary to mitigate the adverse effects of CO2 pollution on human health. Efficient tax policy is indispensable for acquiring the required funds for these initiatives. If policymakers acknowledge and take thorough action on these relationships, future generations will have improved health, higher levels of education, and less environmental taxation.