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Using Life Satisfaction and Happiness Data for Environmental Valuation: An Experienced Preference Approach

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  • Ferreira, Susana

    (University of Georgia)

  • Moro, Mirko

    (University of Stirling)

  • Welsch, Heinz

    (University of Oldenburg)

Abstract

A growing literature in economics uses subjective well-being data collected in surveys as a proxy for utility. Environmental economists have combined these data with the public goods experienced by respondents using a novel non-market valuation approach: the experienced preference approach. In this review, we take stock of what we know, including recent developments, and what we still need to learn about this new approach. We first present a conceptual framework that clarifies the relationship between experienced preference and conventional valuation approaches. We then discuss key challenges for its empirical application and identify areas where additional research would be fruitful.

Suggested Citation

  • Ferreira, Susana & Moro, Mirko & Welsch, Heinz, 2024. "Using Life Satisfaction and Happiness Data for Environmental Valuation: An Experienced Preference Approach," IZA Discussion Papers 16718, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16718
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    More about this item

    Keywords

    subjective well-being; life-satisfaction; happiness; experienced utility; non-market valuation; willingness to pay; public goods;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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