Welsch, H. (2002). Preferences over prosperity and pollution: environmental valuation based on happiness surveys. Kyklos, 55(4), 473-494.
This paper uses cross–national data from happiness surveys, jointly with data on per capita income and pollution, to examine how self–reported well–being varies with prosperity and environmental conditions. This approach allows us to show that citizens care about prosperity and the environment, and to calculate the trade–off people are willing to make between them. The paper finds that the effect of urban air pollution on ...