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Subjective Well-Being and Air Quality in Germany

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  • Schmitt, Maike

Abstract

This paper analyses the relation between air quality and individual life satisfaction in Germany. Life satisfaction data from the German socio-economic panel is connected with daily county pollution in terms of carbon monoxide, nitrogen dioxide and ozone from 1998 to 2008. The assumed microeconometric happiness function is estimated considering individual fixed effects. Ozone has a significant negative impact on life satisfaction. The effect of carbon monoxide as well as nitrogen dioxide is not significant. Moreover, I found that people with environmental worries are more affected by ozone pollution. This was not the case for people with a bad health status. Using the marginal rate of substitution between income and air pollution, it is calculated that an increase of one µg/m3 in average county ozone has to be compensated by an increase of € 11.33 in monthly net household income to hold an average individual's life satisfaction constant.

Suggested Citation

  • Schmitt, Maike, 2013. "Subjective Well-Being and Air Quality in Germany," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 133(2), pages 275-286.
    • Handle: RePEc:aeq:aeqsjb:v133_y2013_i2_q2_p275-286
    DOI: 10.3790/schm.133.2.275
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    2. Yu, Shuangli & Shen, Yuxin & Zhang, Fan & Shen, Yongjian & Xu, Zefeng, 2022. "Air pollution and executive incentive: Evidence from pay-performance sensitivity," International Review of Financial Analysis, Elsevier, vol. 82(C).
    3. Laffan, Kate, 2018. "Every breath you take, every move you make: Visits to the outdoors and physical activity help to explain the relationship between air pollution and subjective wellbeing," Ecological Economics, Elsevier, vol. 147(C), pages 96-113.
    4. Balleer, Almut & Hirsch, Michael & Nöller, Marvin, 2025. "How are you doing today? Air quality and subjective well-being across time and space in Germany," Ruhr Economic Papers 1164, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    5. Guo, Wenbo & Schwanen, Tim & Brand, Christian & Chai, Yanwei, 2025. "Exploring the complex relationships between air pollution, life satisfaction and mental health through the lens of daily activity-travel patterns: The case of a suburban residential community in Beijing," Journal of Transport Geography, Elsevier, vol. 127(C).
    6. Mary Abed Al Ahad, 2024. "Air Pollution Reduces the Individuals’ Life Satisfaction Through Health Impairment," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 19(3), pages 1049-1073, June.
    7. Mathias Kloss & Thomas Kirschstein & Steffen Liebscher & Martin Petrick, 2019. "Robust Productivity Analysis: An application to German FADN data," Papers 1902.00678, arXiv.org, revised Feb 2019.
    8. Ozdamar, Oznur & Giovanis, Eleftherios, 2014. "Valuing the Effects of Air and Noise Pollution on Health Status in Turkey," MPRA Paper 59992, University Library of Munich, Germany.
    9. Fulvio Castellacci & Vegard Tveito, 2016. "The Effects of ICTs on Well-being: A Survey and a Theoretical Framework," Working Papers on Innovation Studies 20161004, Centre for Technology, Innovation and Culture, University of Oslo.
    10. Rong Gao & Hua Ma & Hongmei Ma & Jiahui Li, 2020. "Impacts of Different Air Pollutants on Dining-Out Activities and Satisfaction of Urban and Suburban Residents," Sustainability, MDPI, vol. 12(7), pages 1-13, March.
    11. Giovanis, Eleftherios & Ozdamar, Oznur, 2014. "The effects of Air Pollution on Health Status in Great Britain," MPRA Paper 59988, University Library of Munich, Germany.
    12. 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.
    13. Castellacci, Fulvio & Tveito, Vegard, 2018. "Internet use and well-being: A survey and a theoretical framework," Research Policy, Elsevier, vol. 47(1), pages 308-325.
    14. Siyu Chen & Lingyun He, 2021. "Air Pollution and Medical Insurance: From a Health-Based Perspective," Sustainability, MDPI, vol. 13(23), pages 1-13, November.
    15. Bekhzod Kuziboev & Jaroslav Vlach & Alibek Rajabov & Ergash Ibadullaev & Umidjon Matyakubov & Murod Nazarov & Mokhirakhon Mirkhoshimova, 2024. "Quantile and Threshold Effect of Electricity Consumption on Happiness in Central Asia," International Journal of Energy Economics and Policy, Econjournals, vol. 14(1), pages 321-328, January.
    16. Liu, L-Q. & Yin, Z-L. & Xie, B-C. & Zhou, W., 2020. "Willingness to Pay for Better Air Quality: The case of China," Cambridge Working Papers in Economics 2042, Faculty of Economics, University of Cambridge.

    More about this item

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • D60 - Microeconomics - - Welfare Economics - - - General

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