The twist of longevity: exploring the convergence of the health production function and life-cycle hypothesis in Malaysia's life expectancy through savings

Abstract In an era of dynamic global challenges, understanding the socioeconomic determinants of public health is crucial. Life expectancy, a key indicator of societal well-being, is shaped by healthcare advancements and broader economic, environmental, and demographic factors. While financial determinants are widely recognized, the impact of savings on life expectancy remains largely unexplored. Past studies show that CO2 emissions reduce life expectancy, while recent findings suggest that savings help lower CO2 emissions and may improve life expectancy. However, no study has explicitly analyzed the direct relationship between savings and life expectancy. This study bridges this gap by investigating, for the first time, the role of savings in life expectancy, incorporating CO2 emissions, renewable energy, and urbanization as additional determinants. Using annual data from Malaysia (1980–2020) and employing the ARDL technique, this study provides novel insights into the interplay between financial and environmental factors in shaping public health outcomes. Surprisingly, the findings indicate that savings would have an adverse effect, leading to a decrease in life expectancy. Conversely, urbanization was found to influence life expectancy positively. Additionally, CO 2 emissions are identified as detrimental to life expectancy, while the consumption of renewable energy emerges as an enhancing factor within the Malaysian context. These results imply that the potential harm from savings on longevity can be offset by simultaneous improvements in the standard of living, mainly through factors like urbanization. Furthermore, the negative impact of CO 2 emissions on life expectancy can be mitigated by incorporating renewable energy consumption, thereby enhancing overall life expectancy. Accordingly, we recommend that policymakers prioritize the adoption of clean energy to improve the well-being of citizens and, thereby, increase life expectancy. Additionally, efforts should be directed toward urbanization initiatives, providing citizens with enhanced amenities and further contributing to improved life expectancy. However, caution is advised in promoting savings among citizens unless accompanied by a parallel increase in the standard of living, measured through various parameters, including urbanization.