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Happiness and footprints: assessing the relationship between individual well-being and carbon footprints

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Abstract

This study investigates the nature of the empirical link between an individual’s well-being and their carbon footprint. It employs a novel approach matching data from the Household, Income and Labour Dynamics in Australia survey, to household expenditure and greenhouse gas-based carbon footprints. The carbon footprints are calculated using environmental factor multipliers from the detailed and globally integrated multi-regional input–output (MRIO) tables provided by the Eora MRIO database. The results indicate that higher carbon footprints are associated with marginally lower levels of well-being. This relationship appears to be linear. Furthermore, this relationship does not differ greatly for individuals across the well-being distribution. The findings of this study both: (1) add to the body of knowledge on the link between carbon footprints and well-being; and (2) provide policy makers with evidence and strategic guidance on the well-being implications of mitigating carbon footprints.

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Notes

  1. These findings are not without some recent critics (cf. Deaton 2008; Hagerty and Veenhoven 2003; Veenhoven and Hagerty 2006; Veenhoven and Vergunst 2013).

  2. A related strand of the literature has evolved which integrates the four components (including security, health, good social relations and freedom of choice and action) of the Millennium Ecosystem Assessment’s conceptual framework with human well-being. In this literature, human well-being is defined as the satisfaction of human needs (cf. Yang et al. 2013a, b, 2015). Parallel to this literature are studies for which the link between natural capital and well-being is the focus of investigation (cf. Kopmann and Rehdanz 2013; Engelbrecht 2009; Vemuri and Costanza 2006; Ambrey et al. 2015). Furthermore, at the intersection between the economics of happiness and the non-market valuation literature, another related avenue of inquiry regards the estimation of monetary values or income equivalent figures for the contribution of the environment to one’s subjectively measured well-being (cf. Ambrey and Fleming 2011, 2012, 2014b, c; Ambrey et al. 2014; Welsch 2002, 2006, 2007, among others; Luechinger 2009, 2010; MacKerron and Mourato 2009). Welsch and Ferreira (2013) provide a recent review of this literature.

  3. The use of the MCS as a measure for well-being is by no means new. It has been used to explore how life events affect happiness (Clark and Oswald 2002); the economic and social determinants of well-being (Shields and Price 2005); the link between unemployment and well-being (Carroll 2007); and the role of plausibly exogenous income shocks on well-being (Gardner and Oswald 2007), among others. The use of the MCS also makes the cardinal treatment of utility less problematic (Binder and Coad 2011).

  4. Sun (2010) details the imputation methods applied to the expenditure data collected and provides an examination of the quality of the imputed data.

  5. A Tobit model (see Appendix, Table 4) produces similar results in magnitude, sign and statistical significance.

  6. Aside from the hedonistic arguments, flourishing within the limits of the Earth’s carry capacity is essential to humanity’s continued existence. Despite the rhetoric, truly sustainable development, ‘…development that meets the needs of the present without compromising the ability of future generations to meet their own needs’ (Brundtland 1987), remains elusive (Alexander 2015).

  7. Max-Neef et al. (1991) express different ideas to those put forward in this study regarding how to approach the subject of well-being, a multidimensional concept. The approach taken in this study is described as being ensconced within a ‘seemingly unified utilitarian framework’ as it hedonises the hypothesised determinants of well-being providing an apparently more tractable subject of investigation. Ultimately, Costanza et al. (2007) have done just this, despite trying to integrate Max-Neef et al.’s (1991) work. It is difficult though to truly reconcile the different conceptual perspectives. This study has sought to draw attention to some of the overlap and some of the points of divergence. In the end though, this study also takes a hedonistic utilitarian perspective.

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  1. Urban Research Program (URP), Gold Coast Campus, Griffith University, Queensland, 4222, Australia

    Christopher L. Ambrey

  2. Griffith School of Environment, Nathan Campus, Griffith University, Queensland, 4111, Australia

    Peter Daniels

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Appendix

Appendix

See Tables 4, 5 and 6.

Table 4 Base model of well-being (Tobit)
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Table 5 Full simultaneous-quantile regression results (well-being quantiles 10–50)
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Table 6 Full simultaneous-quantile regression results (well-being quantiles 60–90)
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Ambrey, C.L., Daniels, P. Happiness and footprints: assessing the relationship between individual well-being and carbon footprints. Environ Dev Sustain 19, 895–920 (2017). https://doi.org/10.1007/s10668-016-9771-1

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