The impact of environmental taxation on public health

Abstract

Introduction Infant Mortality Rate (IMR) is a crucial health indicator used to assess public health outcomes globally. This research sought to explore the effects of environmental taxes, alongside environmental, socioeconomic, and governmental factors, on infant mortality across 76 countries from 1997 to 2023. Materials and Methods A panel data approach was adopted, utilizing FEM, REM, and FGLS estimation techniques to analyze the effects of key explanatory variables— including environmental taxes (measured in domestic currency), CO2 and N2O emissions, GDP per capita, government expenditure, internet usage, unemployment rate, and industrial employment— on infant mortality rates. The dataset was obtained from the OECD Statistics and World Bank databases to ensure a comprehensive analysis. Results The findings indicate that environmental taxes are associated with a substantial reduction in infant mortality rates (P<0.01). GDP per capita, government expenditure, internet usage were also found to have significant negative associations with infant mortality (P<0.01). Conversely, CO2 emissions and unemployment rates exhibited a significant positive effect on infant mortality (P<0.01). Meanwhile, N2O emissions showed no significant impact (P>0.05), and industrial employment demonstrated mixed effects depending on the context. Conclusion Environmental taxes, GDP per capita, government expenditure, internet usage were identified as critical factors influencing infant mortality across the studied countries from 1997 to 2023. These results provide actionable insights for policymakers to reinvest environmental tax revenues into healthcare systems, infrastructure, and sustainable development projects to reduce infant mortality rates effectively.