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Happiness and Environmental Degradation: What Determines Happiness?

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  • Aviral Kumar Tiwari

    ()
    (ICFAI University, Tripura)

Abstract

There is much interest among Economists using both theoretical and empirical approaches regarding subjective measures of well being. The present study is an attempt in this direction and it examines if there is a relationship between happiness of people and environmental degradation. We did analysis using log-linear method for the panel of 21 countries for the period 1970-2005, and also analyzed sensitivity of the results. We found that environmental degradation matters for the happiness of the people, and as environment degradation increases, their happiness decreases. Further, economic growth is found to have a positive and significant impact on the happiness of the people, whereas wage inequality and cost of living had a negative and significant impact. However, the impact of openness was inconclusive.

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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 31 (2011)
Issue (Month): 4 ()
Pages: 3192-3210

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Handle: RePEc:ebl:ecbull:eb-11-00507

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Related research

Keywords: Happiness; Well-being; Environmental Degradation; Economic Growth; Openness;

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  1. Ada Ferrer-i-Carbonell & Paul Frijters, 2004. "How Important is Methodology for the estimates of the determinants of Happiness?," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 114(497), pages 641-659, 07.
  2. Gerdtham, Ulf-G & Johannesson, Magnus, 1997. "The Relationship between Happiness, Health and Socio-economic Factors: Results Based on Swedish Micro Data," Working Paper Series in Economics and Finance 207, Stockholm School of Economics.
  3. David G. Blanchflower & Andrew J. Oswald, 2005. "Happiness and the Human Development Index: The Paradox of Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 38(3), pages 307-318, 09.
  4. David G. Blanchflower & Andrew J. Oswald, 2000. "Well-Being Over Time in Britain and the USA," NBER Working Papers 7487, National Bureau of Economic Research, Inc.
  5. Oswald, A.J., 1997. "Happiness and Economic Performance," Papers, Centre for Economic Performance & Institute of Economics 18, Centre for Economic Performance & Institute of Economics.
  6. Easterlin, Richard A, 2001. "Income and Happiness: Towards an Unified Theory," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 111(473), pages 465-84, July.
  7. Ferrer-i-Carbonell, Ada & Gowdy, John M., 2007. "Environmental degradation and happiness," Ecological Economics, Elsevier, Elsevier, vol. 60(3), pages 509-516, January.
  8. Welsch, Heinz, 2006. "Environment and happiness: Valuation of air pollution using life satisfaction data," Ecological Economics, Elsevier, Elsevier, vol. 58(4), pages 801-813, July.
  9. Veenhoven, Ruut, 2007. "Measures of Gross National Happiness," MPRA Paper 11280, University Library of Munich, Germany.
  10. Easterlin, Richard A., 1995. "Will raising the incomes of all increase the happiness of all?," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 27(1), pages 35-47, June.
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