Abstract Environmental expenditure can promote economic growth through health channel, which improve environmental quality, save consumers’ medical cost. We construct a two-period overlapping generation model, studying the theoretical mechanism of environmental expenditure on economic growth through health channel. When it comes to steady state, environmental expenditure can promote economic growth, but also can burden enterprise’s cost, reduce consumption, affecting economic growth negatively. Conducting an empirical analysis based on China’s provincial panel data from 2003 to 2013, the result shows that the increase of government environmental expenditure can significantly promote economic growth.
2016, Vol. 33 
