Navigating the path to human well‐being amidst climate change in Asian countries

Abstract

Abstract This study advances the United Nations Sustainable Development Goals, specifically focusing on Goal 3 (Good Health and Well‐Being) and Goal 13 (Climate Action). This study uses novel analytical techniques that consider cross‐sectional dependencies, intra‐cluster correlation, endogeneity, and parameter heterogeneity to explore the relationship between climate change and human well‐being in Asian countries from 1990Q1 to 2019Q4. Our empirical results show three things. First, an inverse relationship exists between temperature and human well‐being in Asian countries. Second, we observe a robust positive impact of rainfall on human well‐being in Asian countries. Lastly, there is a one‐way causal effect from rainfall to human well‐being and a two‐way causal relationship between temperature and human well‐being. Our robust results, therefore, suggest that developing comprehensive economic plans to promote public welfare can create a positive feedback loop where enhanced well‐being drives greater economic engagement and prosperity.