Social Indicators Research

, Volume 112, Issue 3, pp 549–567 | Cite as

Environment and Happiness: New Evidence for Spain

  • Juncal Cuñado
  • Fernando Pérez de GraciaEmail author


This paper explores the relationship between air pollution, climate and reported subjective well-being (or happiness) in Spanish regions. The results show that, after controlling for most of the socio-economic variables affecting happiness, there are still significant regional differences in subjective well-being. Evidence also suggests that climate and air pollution variables play a significant role in explaining these regional differences in happiness. The analysis also allows us to calculate the monetary value of air quality and climate, deriving the average marginal rate of substitution between income and air quality and climate for the Spanish regions.


Environment economics Climate Air pollution Happiness Regional economics 



We thank the editor and an anonymous referee for helpful comments and valuable suggestions on this paper. The authors gratefully acknowledge financial support provided by the Ministerio de Ciencia y Tecnologia (ECO2008-02458-E) within the EUROCORES HumVIB programme of the European Science Foundation. An earlier version of this paper is published as Working Paper in FUNCAS.


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Copyright information

© Springer Science+Business Media B.V. 2012

Authors and Affiliations

  1. 1.Facultad de Ciencias EconómicasUniversidad de NavarraPamplonaSpain

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