There is a wide recognition of the detrimental effects of greenhouse gases (GHGs) and their connection to increased levels that impact public health. Carbon dioxide (CO2) is recognized as the most significant GHG, plays a major role in the environmental degradation process, and affects human health in adverse ways. Economic growth plays a vital role in addressing this arena. This research explores the interplay of CO2 emissions (CO2E), health expenditures (HEP), and economic growth in Pakistan from 2000 to 2023. The study examines the interrelationship between CO2E, health expenditure per capita (HEPC), and economic growth, with a focus on key economic indicators, including Gross Domestic Product (GDP) and trade openness (TRO). This study uses gross capital formation (GCF), Gross domestic product per capita (GDP per capita), population (POP), and energy use (ENU) as control variables. Utilizing the ARDL model, this study uses logarithmic transformations on all variables to account for non-linearity and reduce variance. The results demonstrate a complex interaction between the variables, with CO2 emissions showing a significant positive relationship with GDP, HEPC, POP, and GCF. This suggests that higher economic activity, increased health spending, and population growth are generally associated with a greater environmental impact. A key finding is that energy use (ENU) exhibits a strong causal link with GDP, highlighting that economic growth is a major driver of energy consumption. The study concludes with policy recommendations aimed at reducing CO2 emissions and managing health expenditures to ensure that economic growth is achieved without compromising environmental and health outcomes.

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*Corresponding author: basit.raza@gcwus.edu.pk

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