Climate change, income and happiness: An empirical study for Barcelona

•Experiencing forest fires, has a permanent negative effect on life-satisfaction.•Climate policy which affects income and consumption may not reduce overall happiness.•Happiness adapts to income decreases after one year. The present article builds upon the results of an empirical study exploring key...

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Bibliographic Details
Published in:Global environmental change 2013-12, Vol.23 (6), p.1467-1475
Main Authors: Sekulova, Filka, van den Bergh, Jeroen C.J.M.
Format: Article
Language:English
Subjects:
Climate
Climate change
Climate policy
Construction
Economic sociology
Economics
Empirical analysis
Empirical research
Environmental problems
Happiness
Human ecology and demography
Income
Life satisfaction
Policies
Sociology
Sociology of economy and development
Spain
Standard of living. Income
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Summary:•Experiencing forest fires, has a permanent negative effect on life-satisfaction.•Climate policy which affects income and consumption may not reduce overall happiness.•Happiness adapts to income decreases after one year. The present article builds upon the results of an empirical study exploring key factors which determine life satisfaction in Barcelona. Based on a sample of 840 individuals we first look at the way changes in income, notably income reductions, associated with the current economic situation in Spain, affect subjective well-being. Income decreases which occur with respect to one year ago have a negative effect on happiness when specified in logarithmic terms, and a positive one when specified as a dummy variable (and percentage change). The divergence in results is discussed and various explanations are put forward. Both effects are however temporary and do not hold for a period longer than a year, probably for reasons of adaptation and a downward adjustment of reference consumption and income levels. Next, we examine the implications of experiencing forest fires and find a lasting negative effect on life satisfaction. Our results suggest that climate policy need not reduce happiness in the long run, even when it reduces income and carbon-intensive consumption. Climate policy may even raise life well-being, if accompanied by compensatory measures that decrease formal working hours and reference consumption standards, while maintaining employment security.
ISSN:0959-3780
1872-9495
DOI:10.1016/j.gloenvcha.2013.07.025