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Sustainability and wellbeing: the dynamic relationship between subjective wellbeing and sustainability indicators

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  • Qasim, Mubashir
  • Grimes, Arthur

Abstract

We analyse the relationship between individuals' subjective wellbeing (SWB) and measures of their country's sustainability. SWB data are sourced from the World Values Survey; sustainability is measured by ecological footprint (EF) and by components of the World Bank's adjusted net savings (ANS) series. ANS, a measure of weak sustainability, represents changes in a country's capital stock including financial, physical, human and natural capital. We show that an increase in strong sustainability, measured by EF and by ANS's natural capital component, is associated with reductions in SWB over the next decade followed by a rebound in SWB over the subsequent decade. We show also that the perfect substitutability assumptions on which ANS is calculated do not hold. Our findings highlight an important political challenge: governments that run sustainable policies may decrease the near-term wellbeing of citizens. This can reduce government's short-term popularity even though the improved sustainability may raise future wellbeing.

Suggested Citation

  • Qasim, Mubashir & Grimes, Arthur, 2022. "Sustainability and wellbeing: the dynamic relationship between subjective wellbeing and sustainability indicators," Environment and Development Economics, Cambridge University Press, vol. 27(1), pages 1-19, February.
    • Handle: RePEc:cup:endeec:v:27:y:2022:i:1:p:1-19_1
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    Cited by:

    1. Li, Yongbo & Barrueta Pinto, Mark Christhian & Kumar, D. Thresh, 2023. "Analyzing sustainability indicator for Chinese mining sector," Resources Policy, Elsevier, vol. 80(C).

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