Can clean air make you happy? Examining the effect of nitrogen dioxide (NO2) on life satisfaction

Knight, S.J; Howley, P.;

Health, Econometrics and Data Group (HEDG) Working Papers from HEDG, c/o Department of Economics, University of York

Abstract: In order to estimate the welfare effects of exposure to nitrogen dioxide (NO2), we combine life satisfaction data from the British Household Panel Survey (BHPS) and UK Household Longitudinal Survey (UKHLS) with detailed air quality records held by the UK Department for Environment, Food and Rural Affairs (DEFRA). To address endogeneity concerns, we linked these with a variety of georeferenced datasets capturing differences in economic, social and environmental conditions across neighbourhoods. We also took advantage of the panel nature of our data by employing individual fixed effects. Our results suggest a significant and negative association between mean annual ambient NO2 and life satisfaction, and moreover that these effects are substantive and comparable to that of many ’big hitting’ life events.

Keywords: NO2; air pollution; life satisfaction; well-being; environmental quality; Understanding Society; British Household Panel Survey; Geographic Information Systems(GIS),England (search for similar items in EconPapers)
JEL-codes: Q51 Q53 (search for similar items in EconPapers)
Date: 2017-03
New Economics Papers: this item is included in nep-agr, nep-env and nep-hap
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:yor:hectdg:17/08

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