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Happiness and Environmental Degradation: What Determines Happiness?

  • Aviral Kumar Tiwari

    ()

    (ICFAI University, Tripura)

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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File URL: http://www.accessecon.com/Pubs/EB/2011/Volume31/EB-11-V31-I4-P289.pdf
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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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  1. Gerdtham, Ulf-G & Johannesson, Magnus, 2001. "The relationship between happiness, health, and socio-economic factors: results based on Swedish microdata," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 30(6), pages 553-557.
  2. Easterlin, Richard A, 2001. "Income and Happiness: Towards an Unified Theory," Economic Journal, Royal Economic Society, vol. 111(473), pages 465-84, July.
  3. Welsch, Heinz, 2006. "Environment and happiness: Valuation of air pollution using life satisfaction data," Ecological Economics, Elsevier, vol. 58(4), pages 801-813, July.
  4. Blanchflower, David G. & Oswald, Andrew J., 2005. "Happiness and the Human Development Index: The Paradox of Australia," IZA Discussion Papers 1601, Institute for the Study of Labor (IZA).
  5. Oswald, Andrew, 1997. "Happiness and Economic Performance," The Warwick Economics Research Paper Series (TWERPS) 478, University of Warwick, Department of Economics.
  6. Easterlin, Richard A., 1995. "Will raising the incomes of all increase the happiness of all?," Journal of Economic Behavior & Organization, Elsevier, vol. 27(1), pages 35-47, June.
  7. Ada Ferrer-i-Carbonell & Paul Frijters, 2002. "How important is Methodology for the Estimates of the Determinants of Happiness?," Tinbergen Institute Discussion Papers 02-024/3, Tinbergen Institute.
  8. Blanchflower, David G. & Oswald, Andrew J., 2001. "Well-Being Over Time in Britain and the USA," The Warwick Economics Research Paper Series (TWERPS) 616, University of Warwick, Department of Economics.
  9. Ferrer-i-Carbonell, Ada & Gowdy, John M., 2007. "Environmental degradation and happiness," Ecological Economics, Elsevier, vol. 60(3), pages 509-516, January.
  10. Veenhoven, Ruut, 2007. "Measures of Gross National Happiness," MPRA Paper 11280, University Library of Munich, Germany.
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