The Wellbeing-Consumption Paradox: A Panel Data Analysis in ASEAN Countries

Rossy Dwi Anita

Abstract


The Esterlin paradox observation shows that income and subjective well-being are correlated at a certain point in time. However, happiness does not increase over a long period of time. On the other hand, income growth is closely associated with an increase in carbon emissions. This leads to risks that drive the climate system to conditions that have consequences for society. This study aims to estimate the relationship between carbon consumption and dimensions of human well-being in ASEAN member states over the period 2014-2021. The relationship between variables is estimated using panel data regression, which shows that carbon consumption has a positive effect on life satisfaction. Meanwhile, GDP per capita is negatively related to life satisfaction. Thus, the Esterlin paradox is still evident to explain the relationship between income and life satisfaction at the country level. The OLS method was run separately to see the influence between variables in a country. Increased carbon consumption in Singapore, Philippines, Laos and Thailand shows a negative relationship with life satisfaction. Meanwhile, the Esterlin paradox is not proven for Singapore and the Philippines.

Full Text:

PDF

References


Ala-Mantila, S., Heinonen, J., Junnila, S., & Saarsalmi, P. (2018). Spatial Nature of Urban Well-being. Regional Studies, 52(7), 959-973. doi:https://doi.org/10.1080/00343404.2017.1360485

Alem, Y., & Kohlin, G. (2012). Life Satisfaction in Urban Ethiopia: Trends and Determinants. Sweden: University of Gothenburg.

Amati, V., Meggiolaro, S., Rivellini, G., & Zaccarin, S. (2018). Social Relations and Life Satisfaction: The Role of Friends. Genus, 74(7), 1-18. doi:https://doi.org/10.1186/s41118-018-0032-z

Apergis, N., & Majeed, M. T. (2021). Greehouse Gas Emissions and Cross-National Happiness: A Global Perspective. Air Quality Atmosohere & Health, 9, 1289-1300. doi:https://link.springer.com/article/10.1007/s11869-021-01019-5

Azpiazu, L., Agirre, I. A., Zabala, A. F., & Escalante, N. (2023). How Does Social Support and Emotional Intelligence Enhance Life Satisfaction Among Adolescents? A Mediational Analysis Study. Pshychology Research and Behavior Management, 16, 2341-2351. doi:https://doi.org/10.2147/PRBM.S413068

Baltagi, B. H. (2005). Econometric Analysis of Panel Data. England: Jhon Wiley & Sons, Ltd.

Berry, B. J., & Okulicz-Kozaryn, A. (2009). Dissatisfaction With City Life: A New Look at Some Old Questions. Cities, 26(3), 117-124. doi:https://doi.org/10.1016/j.cities.2009.01.005

Betti, G., Neri, L., Lonzi, M., & Lemmi, A. (2020). Objective Environmental Indicators and Subjective Well-Being: Are They Directly Related? Sustainability, 12(2277), 1-12. doi:http://dx.doi.org/10.3390/su12062277

Bi, S., Stevens, G. W., Maes, M., Boer, M., Delaruelle, K., Eriksson, C., . . . Finkenauer, C. (2021). Perceived Social Support from Different Sources and Adolescent Life Satisfaction Across 42 Countries/Regions: The Moderating Role of National-Level Generlaized Trust. Journal of Youth and Adolescence, 50(7), 1384-1409. doi:https://doi.org/10.1007/s10964-021-01441-z

Blasco Belled, A., Rogoza, R., Torrelles Nadal, C., & Alsinet, C. (2020). Emotional Intelligence Structure and Its Relationship with Life Satisfaction and Happiness: New Findings from The Bifactor Model. Journal of Happiness Studies, 21(4), 1-19. doi:https://link.springer.com/article/10.1007/s10902-019-00167-x

Brown, M., Fonberg, J., Schellenberg, G., & Yang, R. (2021). Neighbourhood Characteristics and Life Satisfaction of Individuals in Lower-, Middle-, and Higher-Income Families in Canadian Metropolitan Areas. Economic and Social Reports, 1(5), 1-28. doi:https://doi.org/10.25318/36280001202100500006-eng

Burešová, I., Jelínek, M., Dosedlová, J., & Klimusová, H. (2020). Predictors of Mental Health in Adolescence: The Role of Personality, Dispositional Optimism, and Social Support. SAGE Open, 10(2), 1-8. doi:https://doi.org/10.1177/2158244020917963

Cao, X. J. (2016). How Does Neighborhood Design Affect Life Satisfaction? Evidance From Twin Cities. Travel Behaviour and Society, 5, 68-76. doi:https://doi.org/10.1016/j.tbs.2015.07.001

Carver, T., & Grimes, A. (2016). Income or Consumption: Which Better Predicts Subjective Wellbeing? New Zeaaland: Wellington.

Chen, Y., & Mu, H. (2023). Analysis of Influencing Factors of CO2 Emissions Based on Different Coal Dependence Zones in China. Economic Research-Ekonomska Istraživanja, 36(2), 1-18. doi:https://doi.org/10.1080/1331677X.2023.2177182

Cheng, Z., Prakash, K., Smyth, R., & Wang, H. (2020). Housing Wealth and Happiness in Urban China. Cities, 96, 102470. doi:https://doi.org/10.1016/j.cities.2019.102470

Clark, M., & Calleja, K. (2009). Shopping Addiction: A Preliminary Investigastion Among Maltese University Student. Addiction Research & Theory, 16(6), 633-649. doi:https://doi.org/10.1080/16066350801890050

Cong, X., Zhao, M., & Li, L. (2015). Analysis of Carbon Dioxide Emissions of Buildings in Different Regions of China Based on STIRPAT Model. Procedia Engineering, 121, 645-652. doi:https://doi.org/10.1016/j.proeng.2015.08.1057

Coppola, G. (2013). The Esterlin Paradox: An Interpretation. SSRN Electronic Journal, 1-13. doi:http://dx.doi.org/10.2139/ssrn.2345808

Cozzi, L., Chen, O., & Kim, H. (2023, February 22). The World’s Top 1% of Emitters Produce Over 1000 Times More CO2 Than The Bottom 1%. Diambil kembali dari International Energy Agency: https://www-iea-org.translate.goog/commentaries/the-world-s-top-1-of-emitters-produce-over-1000-times-more-co2-than-the-bottom-1?_x_tr_sl=en&_x_tr_tl=id&_x_tr_hl=id&_x_tr_pto=tc

Dufhues, T., Möllers, J., Jantsch, A., Buchenrieder, G., & Camfield, L. (2023). Don’t Look Up! Individual Income Comparisons and Subjective Well Being of Students in Thailand. Journal of Happiness Studies, 24, 477-503. doi:https://doi.org/10.1007/s10902-022-00604-4

Easterlin, R. A. (1974). Does Economic Growth Improve The Human Lot? Some Empirical Evidance. Nations and Household in Economic Growth, 89-125. doi:https://doi.org/10.1016/B978-0-12-205050-3.50008-7

Easterlin, R. A. (1995). Will Raising The Incomes of All Increase The Happiness of All? Journal of Economic Behavior & Organization, 27(1), 35-37. doi:https://doi.org/10.1016/0167-2681(95)00003-B

Easterlin, R. A., McVey, L. A., Switek, M., Sawangfa, O., & Zweig, J. S. (2010). The Happiness-Income Paradox Revisited. PNAS, 107(52), 22463-22468. doi:http://www.pnas.org/cgi/doi/10.1073/pnas.1015962107

Erdoğan, S., Yıldırım, D. Ç., & Gedikli, A. (2019). The Relationship Between CO2 Emissions and Health Indicators: The Case of Turkey. Econometrics Letters, 6(1), 28-39.

Esmail, H. A., & Shili, N. N. (2017). The Relationship Between Happiness and Economic Development in KSA: Study of Jazan Region. The Business and Management Review, 9(1), 310-320.

Esterlin, R. A., & O'connor, K. J. (2020). The Esterlin Paradox. IZA Institute of Labor Economics, 1-40.

Fanning, A. L., & O’Neill, D. W. (2018). The Wellbeing–Consumption Paradox: Happiness, Health, Income, and Carbon Emissions in Growing versus non-Growing Economies. Journal of Cleaner Production, 212(1), 1-23. doi:https://doi.org/10.1016/j.jclepro.2018.11.223

Fastame, M. C. (2021). Life Satisfaction in Late Adult Span: The Contribution of Family Relationships, Health Self-Perception and Physical Activity. Aging Clin Exp Res, 33(6), 1693-1698. doi:https://doi.org/10.1007/s40520-020-01658-1

Fleurbaey, M. (2009). Beyond GDP: The Quest for a Measure of Social Welfare. Journal of Economic Literature, 47(4), 1029-1075. doi:10.1257/jel.47.4.1029

Frey, B., & Stutzer, A. (2003). Happiness and Economics: How The Economy and Institution Affect Human Well-Being. Contemporary Sociology A jaournal of Reviews, 159(2), 435-436. doi:http://dx.doi.org/10.1628/0932456032974862

Grzeskowiak, S., Lichtle, M.-C., Plichon, V., & Sirgy, J. (2015). The Life Satisfication Process: The Role of Consumption Centrality in Life. France: Université François-Rabelais de Tours.

Guven, C. (2009). Reversing The Question: Does Happiness Affect Consumption and Savings Behavior? Berlin: SOEP Papers on Multidiciplinary Panel Data Research.

Jaunky, V. C., Jeetoo, J., & Rampersad, S. (2019). Happiness and Consumption in Mauritius: An Exploratory Study of Socio Economic Dimensions, Basic Needs, Luxuries and Personality Traits. Journal of Happiness Studies, 1-27. doi:https://doi.org/10.1007/s10902-019-00178-8

Jowell, R., & Eva, G. (2009). Happiness is not enough: Cognitive judgements as Indicators of National Wellbeing. Social Indicators Research, 91(3), 317-328. doi:https://psycnet.apa.org/doi/10.1007/s11205-008-9343-3

Kerschner, C. (2010). Economic De-Growth vs Steady State Economy. Journal of Cleaner Production, 18(6), 544-551. doi:https://doi.org/10.1016/j.jclepro.2009.10.019

Khatiwada, J., Muzembo, B. A., Wada, K., & Iked, S. (2021). The Effect of Perceived Social Support on Psychological Distress and Life Satisfaction Among Nepalese Migrants in Japan. PLos One, 16(2), 1-9. doi:https://doi.org/10.1371/journal.pone.0246271

Kim, S., & Rucker, D. D. (2012). Bracing for The Psychological Strom: Proactive versus Reactive Compensatory Consumption. Journal of Consumer Reseach, 39(4), 815-830. doi:https://doi.org/10.1086/665832

Kominfo. (2023, June 8). A Closer Look at the Importance of ASEAN Socio-Cultural Community at the 2023 ASEAN Summit . Diambil kembali dari National Committee of Indonesia's Chairmanship in ASEAN: https://asean2023.id/en/news/a-closer-look-at-the-importance-of-asean-socio-cultural-community-at-the-2023-asean-summit

Kominfo, T. M. (2023, August 8). Interesting Facts of the ASEAN Region in Numbers. Diambil kembali dari ASEAN Indonesia 2023: https://asean2023.id/en/news/interesting-facts-of-the-asean-region-in-numbers

Kumari, N., Kumar, P., & Sahu, N. C. (2021). Do Energy Consumption and Environmental Quality Enhance Subjective Wellbeing in G20 Countries? Environmental Science and Pollution Research, 28, 60246-60267. doi:https://doi.org/10.1007/s11356-021-14965-5

Li, J., & Chen, F. (2022). The Impacts of Carbon Emissions and Energy Consumption on Life Satisfaction: Evidance From China. Original Research, 10(901472), 1-15. doi:https://doi.org/10.3389/fenvs.2022.901472

LI, J., & Chen, F. (2022). The Impacts of Carbon Emissions and Energy Consumption on Life Satisfaction: Evidance From China. Original Research, 10(901472), 1-15. doi:https://doi.org/10.3389/fenvs.2022.901472

Li, N. P., & Kanazawa, S. (2016). Country Roads, Take Me Home ... to My Friends; How Intelligence, Popilation Density, and Friendship Affect Modern Happiness. Research Collection School of Social Sciences, 107(4), 675-697. doi:https://doi.org/10.1111/bjop.12181

Matthew, O., Osabohien, R., Fagbeminiyi, F., & Fasina, A. (2018). Greenhouse Gas Emissions and Health Outcomes in Nigeria: Empirical Insight from Auto-Regressive Distribution Lag Technique. International Journal of Energy Economics and Policy, 8(3), 43-50.

Meule, A., & Voderholzer, U. (2020). Life Satisfaction in Person With Mental Disorders. Quality of Life Research, 29(11), 3043-3052. doi:https://doi.org/10.1007%2Fs11136-020-02556-9

Nam, S.-J. (2019). The Effect of Consumer Empowerment on Risk Perception and Satisfaction with Food Consumption. International Journal of Consumer Studies, 43(5), 429-436. doi:https://doi.org/10.1111/ijcs.12521

Niu, S.-H. (2014). The Empirical Research of The Suzhou Civic Happiness Index. International Conference on Economic Management and Trade Cooperation (hal. 439-443). China: Atlantis Press.

Nordheim, O., & Martinussen, P. E. (2020). Happiness and The Role of Social Protection: How Types of Social Spending Affected Individual's Life Satisfaction in OECD Countries, 1980-2012. Journal of International and Comparative Social Policy, 36(1), 1-24. doi:https://doi.org/10.1080/21699763.2019.1601586

Nursyiana, N., & Badriyah, N. (2022). Determinan Kebahagiaan Perempuan Bekerja Di Indonesia: Analisis Data Indonesia Family Life Survey. Journal of Development Economic and Social Studies, 1(3), 421-432. doi:http://dx.doi.org/10.21776/jdess. 2022.01.3.07

Piao, X., & Managi, S. (2023). Household Energy-Saving Behavior, Its Consumption, and Life Satisfaction in 37 Countries. Scientific Reports, 13, 1382. doi:https://doi.org/10.1038/s41598-023-28368-8

Pratama, R. A., Tamara, F. H., & Wahyuni, H. (2019). Happiness: An Approach to Measure Economics of Well-Being. Advances in Economics, Business and Management Research, 142, 336-341.

Putri, E. I., & Prasetyani, D. (2021). New Evidence of Individual Level of Happiness in Indonesia: Does Easterlin Paradox Matter? Jurnal Ekonomi dan Studi Pembangunan, 13(1), 60-71. doi:http://dx.doi.org/10.17977/um002v13i12021p060

Rahayu, T. P. (2016). The Determinants of Happiness in Indonesia. Mediterranean Journal of Social Sciences, 7(2), 393-404. doi:http://dx.doi.org/10.5901/mjss.2016.v7n2p393

Rao, N. D., & Bear, P. (2012). "Decent Living" Emissions: A Conseptual Framework. Sustainability, 4(4), 656-681. doi:https://doi.org/10.3390/su4040656

Raworth, K. (2017). Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist. London: Chelsea Green Publishing.

Roach, B., Goodwin, N., & Nelson, J. (2019). Consumption and The Consumer Society. Boston: Global Development And Environment Institute.

Sitte, K. G., Huebner, E. S., & Hills, K. J. (2021). Calling for Social Support: Whose Support and What Types of Support Matter for Early Adolescent's Life Satisfaction. Dalam A. Michalos, The Pope of Happiness (Vol. 82, hal. 227-241). Springer, Cham. doi:https://doi.org/10.1007/978-3-030-53779-1_24

Suganya, M. (2020). Life Satisfaction, Living Environment, Sociao-Economic Support and Health Status of Elderly People in Old Age Homes: A Sociological Study in Tamilnadu. Chennai: University of Madras.

Sugiawan, Y., Kurniawan, R., & Managi, S. (2019). Are Carbon Dioxide Emission Reductions Compatible with Sustainable Well-being? Applied Energy, 242, 1-11. doi:https://doi.org/10.1016/j.apenergy.2019.03.113

Su-Jung Nam. (2021). Consumer Empowerment and Self-Assessment of Empowerment. PLoS One, 16(11), 1-14. doi:https://doi.org/10.1371/journal.pone.0259971

Tella, R. D., MacCulloch, R. J., & Oswald, A. J. (2001). Preferences Over Inflation and Unemployment: Evidance From Surveys of Happiness. The American Economic Review, 91(1), 335-341.

Tella, R. D., MacCulloch, R. J., & Oswald, A. J. (2003). The Macroeconomics of Happiness. The Review of Economics and Statistics, 85(4), 809-827.

Venhoeven, L. A., Bolderdijk, J. W., & Steg, L. (2013). Explaining The Paradox: How Pro-Environmental Behaviour Can Both Thwart and Foster Well-Being. Sustainability, 5, 1372-1386. doi:10.3390/su5041372

World Resource Institute, W. (2019). World Greenhouse Gas Emissions: 2019. Diambil kembali dari World Resource Institute: https://www-wri-org.translate.goog/data/world-greenhouse-gas-emissions-2019?_x_tr_sl=en&_x_tr_tl=id&_x_tr_hl=id&_x_tr_pto=tc

Xiang, H., Zeng, X., Han, H., & An, X. (2023). Impact of Population Aging on Carbon Emissions in China: An Empirical Study Based on a Kaya Model. International Journal of Environmental Research and Public Health, 20(1716), 1-20. doi:https://doi.org/10.3390/ijerph20031716

Yang, T., & Liu, W. (2018). Does Air Pollution Affect Public Health and Health Inequality? Empirical Evidence from China. Journal of Cleaner Production, 203(1), 43-52. doi:https://doi.org/10.1016/j.jclepro.2018.08.242

Yoro, K. O., & Daramola, M. (2020). CO2 Emission Sources, Greenhouse Gases, and The Global Warming Effect. Advances in Carbon Capture, 3-28. doi:http://dx.doi.org/10.1016/B978-0-12-819657-1.00001-32

Zhang, K., Pei, J., Wang, S., Rokpelnis, K., & Yu, X. (2022). Life Satisfaction in China, 2010-2018: Trends and Unique Determinants. Applied Research in Quality of Life, 17, 2311-2348. doi:https://doi.org/10.1007/s11482-021-10031-x

Zhang, X., Zhang, Z., & Chen, X. (2017). Happiness in The Air: How Does A Disrty Sky Affect Mental Health and Subjective Well-Being. Journal of Environmental Economics and Management, 85, 81-94. doi:https://doi.org/10.1016/j.jeem.2017.04.001

Zhu, Q., & Peng, X. (2012). The Impacts of Population Change on Carbon Emissions in China During 1978-2008. Environmental Impact Assessment Review, 36, 1-8. doi:https://doi.org/10.1016/j.eiar.2012.03.003

Zhu, Z., Ma, W., Leng, C., & Nie, P. (2021). The Relationship Between Happiness and Consumption Expenditure: Evidance from Rural China. Applied Research in Quality of Life, 16, 1587-1611. doi:https://doi.org/10.1007/s11482-020-09836-z




DOI: https://doi.org/10.32535/jicp.v6i6.2716

Refbacks

  • There are currently no refbacks.


Copyright (c) 2023 Rossy Dwi Anita

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Flag Counter

Published by:

AIBPM Publisher

Editorial Office:

JL. Kahuripan No. 9 Hotel Sahid Montana, Malang, Indonesia
Phone:+62 341 366222
Email: journal.jicp@gmail.com
Website:http://ejournal.aibpmjournals.com/index.php/JICP

Supported by: Association of International Business & Professional Management

If you are interested to get the journal subscription you can contact us at admin@aibpm.org.

ISSN 2622-0989 (Print)
ISSN 2621-993X (Online)

DOI:Prefix 10.32535 by CrossREF

Journal of International Conference Proceedings (JICP) INDEXED:

 

In Process


This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.