Understanding the bearable link between ecology and health outcomes: the criticality of human capital development and energy use

The Middle East and North Africa (MENA) countries share a common context of critical ecological issues and trans border conflicts that threaten the quality of life and long-term stability of the region. The lack of water and arable land in particular has been a significant aspect of the region's history, but in more recent times, these pressures have grown in correlation with development patterns. Previous studies in this regard based on MENA countries data have failed to capture the holistic impact of the environmental risk factors on health outcomes. This study examines the bearable link between ecology and health outcomes, accounting for the criticality of human capital and energy use in the MENA region. The study employs second generation econometrics methods - system GMM, panel quantile regression via moments, and Dumitrescu-Hurlin causality test on panel data covering 2008-2017. The empirical results establish a trade-off between the ecological factors and health outcomes. Specifically, ecological footprint as a measure of environmental quality is positively related to health outcomes, while biocapacity is negatively and insignificantly associated with health outcomes. Both effects of the two environmental factors are undesirable. Furthermore, the results show that human capital has the desired positive and significant effect on health outcomes, while the effect of energy use is negative. Based on the findings, the study provides several policy options that would help to deescalate the pressure on the natural resources.