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Subjective Well-Being and Air Quality in Germany

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  • Schmitt, Maike

Abstract

This paper analyses the relation between air quality and subjective well-being in Germany. Life Satisfaction (LS) data from the German Socio-Economic Panel Study (SOEP) is connected with daily county pollution in terms of carbon monoxide (CO), nitrogen dioxide (NO2) and ozone (O3) from 1998 to 2008. The assumed microeconometric happiness function is estimated considering individual time invariant effects. It is observed that O3 has a significant negative impact on life satisfaction. The estimated influence of current CO as well as NO2 is not significant. Moreover, I found that LS of people with environmental worries is more affected by ozone pollution. This was not the case for people with a bad health status. Using the marginal rate of substitution between income and air pollution, it is calculated that an increase of one µg/m3 in daily average county O3 has to be compensated by an increase of €11.33 in monthly net household income to hold an average individual's LS constant.
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  • Schmitt, Maike, 2013. "Subjective Well-Being and Air Quality in Germany," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 63663, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    • Handle: RePEc:dar:wpaper:63663
    Note: for complete metadata visit http://tubiblio.ulb.tu-darmstadt.de/63663/
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    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. Ozdamar, Oznur & Giovanis, Eleftherios, 2014. "Valuing the Effects of Air and Noise Pollution on Health Status in Turkey," MPRA Paper 59992, University Library of Munich, Germany.
    4. Fulvio Castellacci & Vegard Tveito, 2016. "The Effects of ICTs on Well-being: A Survey and a Theoretical Framework," Working Papers on Innovation Studies 20161004, Centre for Technology, Innovation and Culture, University of Oslo.
    5. Giovanis, Eleftherios & Ozdamar, Oznur, 2014. "The effects of Air Pollution on Health Status in Great Britain," MPRA Paper 59988, University Library of Munich, Germany.
    6. Castellacci, Fulvio & Tveito, Vegard, 2018. "Internet use and well-being: A survey and a theoretical framework," Research Policy, Elsevier, vol. 47(1), pages 308-325.
    7. Siyu Chen & Lingyun He, 2021. "Air Pollution and Medical Insurance: From a Health-Based Perspective," Sustainability, MDPI, vol. 13(23), pages 1-13, November.
    8. Bekhzod Kuziboev & Jaroslav Vlach & Alibek Rajabov & Ergash Ibadullaev & Umidjon Matyakubov & Murod Nazarov & Mokhirakhon Mirkhoshimova, 2024. "Quantile and Threshold Effect of Electricity Consumption on Happiness in Central Asia," International Journal of Energy Economics and Policy, Econjournals, vol. 14(1), pages 321-328, January.
    9. Liu, L-Q. & Yin, Z-L. & Xie, B-C. & Zhou, W., 2020. "Willingness to Pay for Better Air Quality: The case of China," Cambridge Working Papers in Economics 2042, Faculty of Economics, University of Cambridge.
    10. Mathias Kloss & Thomas Kirschstein & Steffen Liebscher & Martin Petrick, 2019. "Robust Productivity Analysis: An application to German FADN data," Papers 1902.00678, arXiv.org, revised Feb 2019.
    11. Rong Gao & Hua Ma & Hongmei Ma & Jiahui Li, 2020. "Impacts of Different Air Pollutants on Dining-Out Activities and Satisfaction of Urban and Suburban Residents," Sustainability, MDPI, vol. 12(7), pages 1-13, March.
    12. Xuan Tian & Cheng Zhang & Bing Xu, 2022. "The Impact of Air Pollution on Residents’ Happiness: A Study on the Moderating Effect Based on Pollution Sensitivity," IJERPH, MDPI, vol. 19(12), pages 1-20, June.

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    More about this item

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • D60 - Microeconomics - - Welfare Economics - - - General

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