Air pollution, residents' happiness, and environmental regulation: evidence from China.

Abstract

This study investigates the impact of air pollution on residents' subjective happiness, using data from the China General Social Survey for 2013, 2015, and 2017, regional air pollution, and socioeconomic indicators. We find that air pollution has a negative effect on residents' subjective happiness. Specifically, the average marginal effect of the logarithm of SO2 emissions on happiness is -0.0099 and significant at the 1% level; namely, a one-unit increase in [Formula: see text] will reduce the likelihood of residents feeling happy by 0.99%. This negative effect is greater for those who have children, are old, or have a higher level of education. We also empirically test two mechanisms by which air pollution affects subjective happiness-depressed mood and leisure activities outside the home-and demonstrate that environmental regulation can moderate the negative impact of air pollution on happiness, but the moderating effects are nonlinear. Environmental governance investments are more effective at the low level, pollutant discharge fees are more effective at the medium level, and complaints about environmental pollution are more effective at the high level. As well as enriching theoretical insights into the relationship between air pollution and happiness, this study provides a valuable reference for developing more suitable policies in relation to environmental management and national happiness.