This paper examines the link between health indicators and the environmental variables
withn a country widely dispersed on the economic development spectrum. While
environment and income are seen to have an inverted-U shaped relationship
(Environmental Kuznets Curve (EKC) hypothesis), it is also well established that
environment and health are positively related. The main point of the study focuses on the
implications of the relationship between health and income. In the early phases of income
growth, the gains in health and the losses in environmental quality could cancel each
other out and this challenges the idea that as incomes increase health would always
improve. To empirically analyse these issues, the estimation of two-stage least squares
model that focuses on the impact of income and the environment on health status, with
environment being an endogenous variable is done. The results show that the
environmental stress variable has a significant negative effect on health status. At the
same time, gross national product (GNP) levels are shown to vary positively with health
status. The Environmental Kuznet Curve is not found in this study, instead, it is found
that the health gains obtained through improved incomes can be negated to a significant
extent if the indirect effect of income acting via the environment is ignored. Research
findings in this regard would be a useful policy instrument towards maximizing both the
environmental and health gains that come with economic growth and development
