Low-carbon economy transition, environmental policy stringency, and public health: the roles of technological development and air quality

The transition to a low-carbon economy is increasingly important for climate mitigation, environmental sustainability, and population health. This work examines the long-run relationships between the low-carbon economy transition, represented through its policy dimension by environmental policy stringency (EPSI) and its energy-transition dimension by renewable energy consumption (REC), industrial-process carbon emissions (CO2IP), research and development expenditure (RDE), air quality, healthcare expenditure (CHE), and life expectancy in 16 developed economies over the period 2000–2020. The long-run relationships are estimated using a fixed effects model with DKSEs. We use a Prais–Winsten regression with PCSEs as a robustness check. The outcomes propose that EPSI and REC are positively and statistically significantly associated with life expectancy in the baseline model. CHE is positively correlated, but the correlation is relatively weak. CO2IP is positive and statistically significant in the baseline model, whereas RDE and PM2.5 are statistically insignificant. The robustness analysis further reinforces the positive associations of EPSI and REC with life expectancy, while CHE remains positively significant and PM₂.₅ becomes negative and statistically significant. In contrast, CO2IP and RDE are statistically insignificant in the PCSE specification. To summarize, EPSI and REC emerge as the most consistently supported dimensions of the low-carbon economy transition associated with higher life expectancy. Evidence for industrial-process carbon emissions and RDE is less robust, while the negative association of PM₂.₅ receives stronger support in the robustness analysis. These findings inform environmental, energy, and public-health policy; however, rather than being causal consequences, they should be understood as connections.