What is the global causality among renewable energy consumption, financial development, and public health? New perspective of mineral energy substitution

Under the background of global warming and economic globalization, energy structure transformation and financial liberalization have become hot issues of global concern. Additionally, the replacement of renewable energy sources for mineral energy is placed great expectations to reduce environmental pollution and promote public health. Although the effects of renewable energy consumption (REC) and financial development (FD) on public health (PH) have been verified by researchers, the long-term causality among the three has not been explored, especially from global evidence. To verify the long-term relationship and causality among REC, FD, and PH at the global level, using annual panel data for 136 nations from 2000 to 2018, this paper employs the Crosssectional dependence test, CADF unit root test, the second generation cointegration test, Pooled Mean Group estimation, and the Granger causality test. This paper finds some interesting results. First, the long-term cointegration relationship and the two-way causal relationship are among REC, FD, and PH. Second, REC and FD have a long-term promoting effect on PH, but have no significant effect in the short term. This conclusion holds up after a series of robustness tests. Third, there is heterogeneity in the long-term impact of REC and FD on PH. The long-term PH benefits of REC are more vital in low-polluting countries, trade-open countries, poorinstitution countries, and non-emerging market countries, while FD has a long-term negative impact on PH in high-polluting and trade-tight countries. Based on the above results, we believe that it is necessary to formulate appropriate energy policies and financial policies according to local conditions. In summary, our results provide essential policy recommendations for energy transformation and public health improvement in countries around the world in the process of financial liberalization.