Happiness and Environmental Degradation: What Determines Happiness?
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.
Volume (Year): 31 (2011)
Issue (Month): 4 ()
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