A Social Approach to Environmental Sustainability: The Nexus Well‐Being, Tourism, Digitalization and Renewable Energy in Scandinavian Countries

This research explores the impact of subjective well‐being (SWB) on CO2 emissions in Scandinavian countries based on the need to analyze the effects of social indicators shaping environmental sustainability. The study aims to introduce the Welfare‐Based SWB approach to the literature by expanding the classical Environmental Kuznets Curve (EKC) hypothesis with the social welfare dimension. SWB is considered in this study to be a social reflection and indirect measure of economic growth, which is the core determinant in the classical EKC hypothesis. The second‐generation cointegration test, the Durbin‐Hausman, and AMG long‐term forecasting methods were used in this context. According to the empirical findings, SWB and digitalization increase carbon emissions, while tourism revenues and renewable energy consumption reduce emissions. The findings indicate that the classical EKC hypothesis is not confirmed and, similarly, an increase in social welfare (SWB) does not automatically lead to environmental improvement. Therefore, policymakers should develop social policies that will increase environmental sensitivity along with an increase in welfare.