LULUCF Including - Excluding Emissions and Health Expenditures Path and Panel Data Analysis of Solution Result Relationship Example of G7 Countries

Traditional production is carried out using fossil fuels. In recent years, the destructive effects of fossil fuel elimination especially on human health and the environment became prominent. This effect leads to an increase in health expenditures (HE), and health problems that are severe and require long term therapies. To counter this problem, some countries have taken some measures to mini the effects of fossil fuels. One of these measures is called “Land Use, Land Use Change and Forestry” or LULUCF for short. LULUCF aims to reduce greenhouse gas emissions in the atmosphere by natural means that are cheap. In this regard, this paper aims to analyze the effects of harmful gases of total emissions in terms of health expenditures both including LULUCF (LI) and excluding LULUCF (LE). Panel data methodology and SPSS Path (Structural Equation) Model were used and cover G7 countries between 1990 and 2016. It was found that there is no linear relationship between LE and HE and LI has no effect on HE. Path analysis showed a negative correlation between LI total emission and SH and a positive correlation between LE total emission and HE.