IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/64676.html

Valuing the environment: Happiness and willingness-to-pay

Author

Listed:
  • Cheng, Zhiming
  • Wang, Ben

Abstract

This paper examines the impacts of subjective and objective measures of environmental quality on happiness and willingness to pay higher prices in China. We find that a higher level of happiness is associated with better air quality, but not necessarily with better water quality. The government can encourage willingness to pay for the former, but can only substitute it for the latter. Although perceived environmental quality is important for willingness-to-pay, it plays little role in rating happiness. However, a more highly perceived government effort increases both people’s life satisfaction and willingness-to-pay.

Suggested Citation

  • Cheng, Zhiming & Wang, Ben, 2015. "Valuing the environment: Happiness and willingness-to-pay," MPRA Paper 64676, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:64676
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/64676/1/MPRA_paper_64676.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Smyth, Russell & Mishra, Vinod & Qian, Xiaolei, 2008. "The Environment and Well-Being in Urban China," Ecological Economics, Elsevier, vol. 68(1-2), pages 547-555, December.
    2. Li, Zhengtao & Folmer, Henk & Xue, Jianhong, 2014. "To what extent does air pollution affect happiness? The case of the Jinchuan mining area, China," Ecological Economics, Elsevier, vol. 99(C), pages 88-99.
    3. Russell Smyth & Ingrid Nielsen & Qingguo Zhai & Tiemin Liu & Yin Liu & C.Y. Tang & Zhihong Wang & Zuxiang Wang & Juyong Zhang, 2008. "Environmental Surroundings And Personal Well-Being In Urban China," Monash Economics Working Papers 32/08, Monash University, Department of Economics.
    4. Xingmin Shi, 2015. "Factors Influencing the Environmental Satisfaction of Local Residents in the Coal Mining Area, China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 120(1), pages 67-77, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhiming Cheng & Vinod Mishra & Ingrid Nielsen & Russell Smyth & Ben Zhe Wang, 2017. "Wellbeing in China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 132(1), pages 1-10, May.
    2. Ben Zhe Wang & Zhiming Cheng, 2017. "Environmental Perceptions, Happiness and Pro-environmental Actions in China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 132(1), pages 357-375, May.
    3. Welsch, Heinz & Ferreira, Susana, 2014. "Environment, Well-Being, and Experienced Preference," International Review of Environmental and Resource Economics, now publishers, vol. 7(3-4), pages 205-239, December.
    4. Li, Fan & Zhou, Tao, 2020. "Effects of objective and subjective environmental pollution on well-being in urban China: A structural equation model approach," Social Science & Medicine, Elsevier, vol. 249(C).
    5. Xingmin Shi & Xueping Li & Xieyang Chen & Luping Zhang, 2022. "Objective air quality index versus subjective perception: which has a greater impact on life satisfaction?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(5), pages 6860-6877, May.
    6. Pan Zhang & Zhiguo Wang, 2019. "PM 2.5 Concentrations and Subjective Well-Being: Longitudinal Evidence from Aggregated Panel Data from Chinese Provinces," IJERPH, MDPI, vol. 16(7), pages 1-13, March.
    7. Zuoxian Gan & Tao Feng & Min Yang, 2018. "Exploring the Effects of Car Ownership and Commuting on Subjective Well-Being: A Nationwide Questionnaire Study," Sustainability, MDPI, vol. 11(1), pages 1-20, December.
    8. Su Kye & Keeho Park, 2014. "Health-related determinants of happiness in Korean adults," International Journal of Public Health, Springer;Swiss School of Public Health (SSPH+), vol. 59(5), pages 731-738, October.
    9. Bertram, Christine & Rehdanz, Katrin, 2015. "The role of urban green space for human well-being," Ecological Economics, Elsevier, vol. 120(C), pages 139-152.
    10. Xinghua Zhao & Zongfeng Sun, 2020. "The Effect of Satisfaction with Environmental Performance on Subjective Well-Being in China: GDP as a Moderating Factor," Sustainability, MDPI, vol. 12(5), pages 1-12, February.
    11. Wang, Jinxian & Wang, Yangjie & Sun, Cuicui & Chen, Xiaohong, 2021. "Does mandatory air quality information disclosure raise happiness? Evidence from China," Energy Economics, Elsevier, vol. 94(C).
    12. Manfred Lenzen & Robert A. Cummins, 2013. "Happiness versus the Environment—A Case Study of Australian Lifestyles," Challenges, MDPI, vol. 4(1), pages 1-19, May.
    13. Po-Ju Chang & Rui Song & Yeqiang Lin, 2019. "Air Pollution as a Moderator in the Association Between Leisure Activities and Well-Being in Urban China," Journal of Happiness Studies, Springer, vol. 20(8), pages 2401-2430, December.
    14. Lo, Alex Y., 2014. "Negative income effect on perception of long-term environmental risk," Ecological Economics, Elsevier, vol. 107(C), pages 51-58.
    15. Nicholas Apergis, 2018. "The Impact of Greenhouse Gas Emissions on Personal Well-Being: Evidence from a Panel of 58 Countries and Aggregate and Regional Country Samples," Journal of Happiness Studies, Springer, vol. 19(1), pages 69-80, January.
    16. Zheng Fang, 2017. "Panel Quantile Regressions and the Subjective Well-Being in Urban China: Evidence from RUMiC Data," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 132(1), pages 11-24, May.
    17. Carlsson, Fredrik & Lampi, Elina & Li, Wanxin & Martinsson, Peter, 2014. "Subjective well-being among preadolescents and their parents – Evidence of intergenerational transmission of well-being from urban China," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 48(C), pages 11-18.
    18. Shuai Zhang & Binbin Liu & Dajian Zhu & Mingwang Cheng, 2018. "Explaining Individual Subjective Well-Being of Urban China Based on the Four-Capital Model," Sustainability, MDPI, vol. 10(10), pages 1-14, September.
    19. Meng-Meng Geng & Ling-Yun He, 2021. "Environmental Regulation, Environmental Awareness and Environmental Governance Satisfaction," Sustainability, MDPI, vol. 13(7), pages 1-17, April.
    20. Maguire, Karen & Winters, John V., 2016. "Energy Boom and Gloom? Local Effects of Oil and Natural Gas Drilling on Subjective Well-Being," IZA Discussion Papers 9811, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:64676. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.