On the Use of Subjective Well-Being Data for Environmental Valuation

Susana Ferreira and Mirko Moro

No 2009-24, Stirling Economics Discussion Papers from University of Stirling, Division of Economics

Abstract: This paper explores the potential of using subjective well-being (SWB) data to value environmental attributes. A theoretical framework compares this method, also known as the lifesatisfaction approach, with the standard hedonic pricing approach, identifying their similarities and differences. As a corollary, we show how SWB data can be used to test for the equilibrium condition implicit in the hedonic approach (i.e., equality of utility across locations). Results for Ireland show that the equilibrium condition required by the hedonic pricing approach in Irish markets does not hold. They also show that air quality, in the baseline specification, and warmer climate, across all the specifications, have a significant positive impact on SWB. Their associated monetary estimates, however, seem too large.

Keywords: environmental valuation; happiness; hedonic pricing; subjective well-being; life satisfaction; climate; air pollution (search for similar items in EconPapers)
Date: 2009-12
New Economics Papers: this item is included in nep-env and nep-hap
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Citations: View citations in EconPapers (5)

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http://hdl.handle.net/1893/1892

Related works:
Journal Article: On the Use of Subjective Well-Being Data for Environmental Valuation (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:stl:stledp:2009-24

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