Abstract
The quality of life of citizens in a city is related to the sustainable decisions made by their leaders. By using principal component analysis (PCA) and taking an intellectual capital perspective (all sources of knowledge in human, relational and structural areas), we explore which of the three dimensions used to measure the sustainability of a city—economic, social or environmental—has the greatest effect on a subjective measurement of quality of life. We propose an econometric model based on a tangible production model to study the relationship between the quality of life and sustainability. To that end, we perform an in-depth examination of the different effects on the four dimensions that comprise the measure of the subjective quality of life: satisfaction, mobility, integration and public service. The results of the estimated model of citizens’ quality of life confirm the existence of a direct relationship for the 52 European cities under study; however, the least relevant role is played by the environmental dimension, which is still unappreciated by citizens. Conversely, the economic and social dimension are found to be determinants in all cases, except for social integration. Therefore, a key requirement of the management aimed at achieving sustainable development in European cities is to activate the environmental dimension.
Highlights
The conceptualization of the quality of life in and sustainability of a territory, along with the analysis of the relationship between these concepts, has become a key focus of applied economics research, even for social and environmental policies [1]
By using principal component analysis (PCA) and taking an intellectual capital perspective, we explore which of the three dimensions used to measure the sustainability of a city—economic, social or environmental—has the greatest effect on a subjective measurement of quality of life
We make an ambitious attempt, avoiding information biases, to develop a triple bottom line (TBL) sustainability index by using an intellectual capital approach. This can be characterized as a composite indicator constructed using principal component analysis with objective weightings that accounts for the three abovementioned dimensions, as can be seen in the study by Alfaro et al (2017) [3]
Summary
The conceptualization of the quality of life in and sustainability of a territory, along with the analysis of the relationship between these concepts, has become a key focus of applied economics research, even for social and environmental policies [1]. In seeking to improve citizens’ quality of life, we must go beyond minimalist approaches limited to single variables, such as per capita income or gross domestic product (GDP), to include aspects such as sustainable development and smart planning [2]. Citizens should have a good life but within the limits of this planet. The environment, social policy, and good governance are essential pillars of a good quality of life and can be analyzed in terms of types of intangible capital or intellectual capital [3]
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