Life satisfaction and environmental conditions: issues for policy

This paper investigates the relationship between pollution and life satisfaction in countries around the globe over recent decades. Our empirical model allows both per capita income and pollution to enter as arguments of a life satisfaction 'production function'. The results reveal that pollution has a negative marginal impact on the level of life satisfaction of citizens of countries - although this negative impact is reduced as these countries become more economically prosperous. We conclude that interactions between per capita income and pollution should be considered in empirical studies assessing life satisfaction.