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Bad Air Days: The Effects of Air Quality on Different Measures of Subjective Well-Being

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  • Dolan, Paul
  • Laffan, Kate

Abstract

Air pollution makes us feel bad when we think about it – but do bad air days really affect our subjective well-being (SWB) when we are not thinking about them? And if so, do they affect the range of possible measures of SWB in similar ways? Using data from over 165,000 individuals in the UK, we model evaluative, experiential and eudemonic SWB as a function of demographic and local area characteristics including the background concentration of particulate matter. Our results indicate that air pollution adversely affects all of the positive measure of SWB included in our analysis; how satisfied people report being with their lives overall, how happy they report feeling on the previous day and how worthwhile they rate their activities as being, and that it does so over and above its effects on self-reported health. These effects can be monetized and may imply greater priority being afforded to pollution abatement programs than is currently warranted based on existing estimates of the health effects alone.

Suggested Citation

  • Dolan, Paul & Laffan, Kate, 2016. "Bad Air Days: The Effects of Air Quality on Different Measures of Subjective Well-Being," Journal of Benefit-Cost Analysis, Cambridge University Press, vol. 7(1), pages 147-195, April.
    • Handle: RePEc:cup:jbcoan:v:7:y:2016:i:01:p:147-195_00
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    Cited by:

    1. Yu, Shuangli & Shen, Yuxin & Zhang, Fan & Shen, Yongjian & Xu, Zefeng, 2022. "Air pollution and executive incentive: Evidence from pay-performance sensitivity," International Review of Financial Analysis, Elsevier, vol. 82(C).
    2. Laffan, Kate, 2018. "Every breath you take, every move you make: Visits to the outdoors and physical activity help to explain the relationship between air pollution and subjective wellbeing," Ecological Economics, Elsevier, vol. 147(C), pages 96-113.
    3. 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).
    4. Kip Viscusi, W. & Gayer, Ted, 2016. "Rational Benefit Assessment for an Irrational World: Toward a Behavioral Transfer Test1," Journal of Benefit-Cost Analysis, Cambridge University Press, vol. 7(1), pages 69-91, April.
    5. Jiang, Dequan & Li, Weiping & Shen, Yongjian & Yu, Shuangli, 2022. "Does air pollution affect earnings management? Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 72(C).
    6. Lohmann, Paul & Pondorfer, Andreas & Rehdanz, Katrin, 2019. "Natural Hazards and Well-Being in a Small-Scale Island Society," Ecological Economics, Elsevier, vol. 159(C), pages 344-353.
    7. Arik Levinson, 2020. "Happiness and air pollution," Chapters, in: David Maddison & Katrin Rehdanz & Heinz Welsch (ed.), Handbook on Wellbeing, Happiness and the Environment, chapter 9, pages 164-182, Edward Elgar Publishing.
    8. Arik Levinson, "undated". "Happiness and Air Pollution," Working Papers gueconwpa~20-23-10, Georgetown University, Department of Economics.
    9. Atkinson, Giles & Groom, Ben & Hanley, Nicholas & Mourato, Susana, 2018. "Environmental Valuation and Benefit-Cost Analysis in U.K. Policy," Journal of Benefit-Cost Analysis, Cambridge University Press, vol. 9(1), pages 97-119, April.
    10. Tang, Linjia & Guo, Yingying & Zha, Jianfeng & Zheng, Weiwei, 2024. "Acquiescence or Redemption: CEO’s early-life experience of environmental pollution and corporate green innovation," Journal of Business Research, Elsevier, vol. 173(C).
    11. 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.

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