ANALYZING THE AGEING POPULATION AND HEALTHCARE EXPENDITURES FROM AN ENVIRONMENTAL SUSTAINABILITY PERSPECTIVE FOR THE EU COUNTRIES: A SPATIAL APPROACH

The aim of this study is to analyze the impact of population aging (AG), healthcare expenditures (HE), per capita GDP, and renewable energy budgets (REB) on environmental quality (EQ). To achieve this, data from 22 European Union (EU) countries covering the period from 2005 to 2020 were examined using spatial panel data analysis. The findings indicate the presence of spatial interactions among EU countries. Model specification tests supported the spatial panel lag model with fixed effects. The spatial effect coefficient was found to be 0.53 and statistically significant. While AG and REB positively influenced EQ, HE and per capita GDP exhibited negative effects. The results highlight the complex interactions among economic, social, and environmental factors. The study concludes with policy recommendations aimed at supporting EU countries in achieving their climate goals.