Fossil Fuel Subsidies and Carbon Intensity of Well-Being in Emerging and Developing Economies

The carbon intensity of well-being, which combines environmental well-being and human well-being outcomes into a single variable, represents the ratio of CO2 emissions to life expectancy. This study seeks to determine the impact of factors affecting the level of pollution per unit of human well-being. To this end, the study examines the impact of fossil fuel subsidies, access to energy, health expenditures, and per capita income on carbon intensity of well-being in 33 emerging and developing economies. The findings reveal that fossil fuel subsidies and per capita income increase the pollution level per unit of human well-being, i.e., they increase carbon intensity of well-being. Furthermore, they show that access to energy and health expenditures reduce the pollution level per unit of human well-being, i.e., they decrease carbon intensity of well-being. Based on these findings, policy makers can help achieve the desired sustainability goals by gradually reducing fossil fuel subsidies, shifting to clean energy sources, and increasing access to energy.