Life satisfaction and environmental conditions in Italy: a pseudo-panel approach

This paper focuses on the relationship between subjective well-being and environmental conditions in Italy. Using a pseudo-panel approach, based on cohort data from the ISTAT multipurpose survey “Aspect of Daily Life” for the years 2010-2012, this paper aims at investigating the role of subjective and objective measures of environmental quality on life satisfaction by using fixed effects models taking into account regional heterogeneity and generational effects. A robust negative impact of air pollutions on self-reported life satisfaction is found. With respect to personal characteristics and control variables, the paper finds that the economic conditions and the perception of personal health status play important roles in explaining life satisfaction while car density, relative poverty risk and unemployment rates affect life satisfaction negatively.