Unraveling the links between happiness, economic growth, and environmental sustainability

Happiness has historically been closely linked to economic income levels; however, this association has been challenged due to the emergence of alternative viewpoints. In recent years, environmental pollution has emerged as a substantial factor influencing happiness. This study investigates the impact of environmental pollution and economic growth on happiness levels across 15 European countries from 1996 to 2016. The findings from the Pedroni cointegration test indicate that all variables are cointegrated, suggesting a stable long-run relationship. According to the results of a panel autoregressive distributed lag (ARDL) test, economic growth has been demonstrated to exert a positive effect on happiness in both the short and long run. This suggests that an increase in economic activity tends to result in an enhancement of overall well-being. Conversely, environmental pollution has been shown to exert a negative impact on happiness, albeit this effect only turns out to be only in the long run. This finding suggests that although an increase in economic activity promotes happiness in the immediate short term, the harmful effects of environmental pollution accumulate over time, ultimately resulting in reduced overall happiness levels. These findings underscore the intricate interplay between economic development and environmental quality, underscoring the necessity for sustainable economic policies that mitigate environmental harm while promoting long-term well-being.