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Environmental Quality and Life Satisfaction: Subjective Versus Objective Measures of Air Quality

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  • Pei-shan Liao
  • Daigee Shaw
  • Yih-ming Lin

Abstract

The purpose of this paper is to investigate the influence of objective air quality on individual life satisfaction (LS) through the moderating effect of perceived air quality on the latter. Unlike previous studies, we incorporates both of the data from the 2010 Taiwan Social Change Survey and the monthly mean of Pollutant Standards Index (PSI) from fixed air quality monitoring stations to understand their association with individual well-being. A two-stage estimation approach is employed, in which individual perceived subjective air quality level is employed as an explanatory variable in LS regression models. The results show that the objective measure of air quality, PSI, is significantly associated with the perceived air quality and with LS, respectively. When the endogeneity of perceived air quality is considered in the relationship between objective air quality and life satisfaction, the results indicate that the perceived air quality has a positive influence on LS, while the effect of objective measure of air quality on the latter becomes insignificant. In sum, the objective air quality has an indirect effect, but no direct effect, on LS. Furthermore, individual’s age, gender, health, and variables of environmental experience and behaviors are found to be significant determinants of LS. Discussions on the findings are provided. Copyright Springer Science+Business Media Dordrecht 2015

Suggested Citation

  • Pei-shan Liao & Daigee Shaw & Yih-ming Lin, 2015. "Environmental Quality and Life Satisfaction: Subjective Versus Objective Measures of Air Quality," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 124(2), pages 599-616, November.
  • Handle: RePEc:spr:soinre:v:124:y:2015:i:2:p:599-616
    DOI: 10.1007/s11205-014-0799-z
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    2. Meng-jieu Chen, 2017. "Job versus environment: an examination on the attitude of union members toward environmental spending," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 19(4), pages 761-788, October.
    3. Arik Levinson, 2020. "Happiness and air pollution," Chapters, in: David Maddison & Katrin Rehdanz & Heinz Welsch (ed.), Handbook on Wellbeing, Happiness and the Environment, chapter 9, pages 164-182, Edward Elgar Publishing.
    4. Li, Fan & Zhou, Tao, 2020. "Effects of objective and subjective environmental pollution on well-being in urban China: A structural equation model approach," Social Science & Medicine, Elsevier, vol. 249(C).
    5. Jie Zhu & Chuntian Lu & Anrui Song, 2023. "Air Pollution Governance and Residents’ Happiness: Evidence of Blue Sky Defense in China," Sustainability, MDPI, vol. 15(21), pages 1-17, October.
    6. Xuan Tian & Cheng Zhang & Bing Xu, 2022. "The Impact of Air Pollution on Residents’ Happiness: A Study on the Moderating Effect Based on Pollution Sensitivity," IJERPH, MDPI, vol. 19(12), pages 1-20, June.
    7. Xingmin Shi & Xueping Li & Xieyang Chen & Luping Zhang, 2022. "Objective air quality index versus subjective perception: which has a greater impact on life satisfaction?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(5), pages 6860-6877, May.
    8. Sun, Bindong & Liu, Jiahang & Yin, Chun & Cao, Jason, 2022. "Residential and workplace neighborhood environments and life satisfaction: Exploring chain-mediation effects of activity and place satisfaction," Journal of Transport Geography, Elsevier, vol. 104(C).
    9. Yenniel Mendoza & Roger Loyola & Alonso Aguilar & Roberto Escalante, 2019. "Valuation of Air Quality in Chile: The Life Satisfaction Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 145(1), pages 367-387, August.
    10. Fanghua Li & Abbas Ali Chandio & Yinying Duan & Dungang Zang, 2022. "How Does Clean Energy Consumption Affect Women’s Health: New Insights from China," IJERPH, MDPI, vol. 19(13), pages 1-16, June.
    11. David G. Blanchflower & Carol L. Graham, 2022. "The Mid-Life Dip in Well-Being: a Critique," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 161(1), pages 287-344, May.
    12. Arik Levinson, "undated". "Happiness and Air Pollution," Working Papers gueconwpa~20-23-10, Georgetown University, Department of Economics.
    13. Meng-Meng Geng & Ling-Yun He, 2021. "Environmental Regulation, Environmental Awareness and Environmental Governance Satisfaction," Sustainability, MDPI, vol. 13(7), pages 1-17, April.

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