ABSTRACT
Access to cheap fossil fuels, incentivised by large government subsidies, is one of the reasons behind the accelerated gross domestic product per capita growth in Southeast Asia. However, the ambient air pollution from fossil fuel combustion has a latent cost which is a negative health impact – causing respiratory diseases, lung cancer, labour loss, and a huge economic burden in the long run. In Southeast Asia (the Association of Southeast Asian Nations region), lung cancer is the leading cause of cancer-related death in men and the second leading cause in women. This nexus study employs a panel vector error correction model and panel generalised method of moments using data from ten member states of the Association of Southeast Asian Nations for 2000–2016 to explore the possible association between emissions, lung cancer, and the economy. The empirical results confirm that carbon dioxide and particulate matter (PM2.5) are the major risk factors for lung cancer in the region. In addition, increasing the share of renewable energy in total energy consumption and expanding per capita healthcare expenditure tend to reduce the prevalence of lung cancer. Governments need to redirect subsidies from fossil fuels to renewable energy to generate a clean and healthy environment. Furthermore, cost creation for fossil fuel consumption through carbon taxation, especially in the power generation sector, is important to induce private sector investment in green energy projects.
