nep-hap New Economics Papers
on Economics of Happiness
Issue of 2026–05–18
five papers chosen by
Viviana Di Giovinazzo, Università degli Studi di Milano-Bicocca
  1. When economic growth improves subjective well-being By Sarracino, Francesco; Burger, Martijn; Peroni, Chiara; O'Connor, Kelsey J.; Rigas, Nikolaos; Slater, Giulia; Wu, Fengyu
  2. London Clearing: Ultra Low Emission Zones Calling for Well-Being By Blanc, Corin
  3. Max-Neef's 'Threshold Hypothesis' - 30 years later By Valenzuela-Rivera, Luis; Pastén, Roberto
  4. Societal wellbeing: US vs EU By Benczur Peter; Cariboni Jessica; Da Costa Shaun Mark; Giovannini Enrico
  5. Gender justice and the wellbeing economy: the feminist case for an alternative economic paradigm By Kabeer, Naila; Plomien, Ania
  1. By: Sarracino, Francesco; Burger, Martijn; Peroni, Chiara; O'Connor, Kelsey J.; Rigas, Nikolaos; Slater, Giulia; Wu, Fengyu
    Abstract: This paper provides updated evidence on the possibility of a virtuous cycle that, by prioritizing subjective well-being in decision making, would lead to socially and environmentally sustainable economies where individuals can thrive. We first argue that economic growth does not guarantee better lives for individuals. Our policy efforts should instead concentrate on promoting well-being directly and establishing conditions that allow economic growth to enhance well-being. We then introduce neo-humanism, a framework to prioritize well-being in decision making, and review the key evidence linking social relations, sustainability, and economic performance. In addition, we provide new evidence on defensive consumption, introduce a new measure of performance - well-being productivity, and provide some examples of policies targeting subjective well-being directly. The main implication is that public policy should prioritize well-being in decision making, rather than focusing on growth in the hope that its benefits will eventually trickle down onto people.
    Keywords: subjective well-being, economic growth, Easterlin paradox, social trust, inequality, social capital, public policy
    JEL: I31 O47 D60 Q56 D11 Z13
    Date: 2026
    URL: https://d.repec.org/n?u=RePEc:zbw:glodps:1751
  2. By: Blanc, Corin
    Abstract: In response to rising urban air pollution, European cities have adopted Low Emission Zones (LEZs), restricting the most polluting vehicles. While effective in improving air quality, these policies remain controversial due to concerns over fairness and acceptability. This paper examines the impact of London’s 2021 and 2023 Ultra Low Emission Zone (ULEZ) expansions on subjective well-being (SWB). Using panel data from the UK Household Longitudinal Study and a staggered difference-in-differences design with individual and year fixed effects, we compare changes in life satisfaction among residents inside and outside the affected areas. We find that the 2021 expansion led to a decline in life satisfaction by approximately 0.4 points – which doubles for low-income households – with no evidence of pre-existing differential trends. We do not detect statistically significant effects within the available post-treatment window on Londoners living in the expanded zone in 2023. We explore the mechanisms driving this decline and find that the well-being loss is fundamentally mediated by car dependency and transport mode availability. While the policy increased reliance on public transport, we show that a higher accessibility to public transport reduces the well-being decline of Londoners. These findings suggest that LEZs can generate short-term welfare costs despite achieving behavioural change, highlighting the need for complementary measures to enhance social acceptability.
    Keywords: Subjective well-being, Air pollution, Low-emission zones, Difference-in-differences
    Date: 2026–04
    URL: https://d.repec.org/n?u=RePEc:cpm:docweb:2601
  3. By: Valenzuela-Rivera, Luis; Pastén, Roberto
    Abstract: Thirty years ago, Ecological Economics published a brief article by the Chilean economist Manfred Max-Neef in which he proposed a ``threshold hypothesis'': there is a GDP level after which economic growth may lead to a deterioration in the quality of life rather than its improvement. Does the hypothesis stand to the new and better data available? This paper addresses this question. First, it provides methodological clarifications which are relevant to the testing of the hypothesis, which have so far overlooked in the literature. Key is that the hypothesis as defined by Max-Neef is not really testable, so a weaker version is proposed. Second, in light of these clarifications, we test this weaker version using all ISEW data available to date, as well as life satisfaction data. Neither indicator supports the threshold hypothesis. Empirical caveats remain in place, particularly in the lack of coherence across ISEW/GPI studies. Many gaps remain for further research.
    Keywords: Threshold Hypothesis; ISEW; GPI; Life satisfaction; Happiness
    JEL: I31 Q56 Q57
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:pra:mprapa:128419
  4. By: Benczur Peter (European Commission - JRC); Cariboni Jessica (European Commission - JRC); Da Costa Shaun Mark (European Commission - JRC); Giovannini Enrico
    Abstract: ‣ GDP (or household income) alone is insufficient to measure wellbeing. Adopting new, distribution- and sustainability-sensitive welfare metrics, fully in line with the provisions of the EU Treaty, could help to shape more inclusive and balanced economic and social policies that also respect planetary boundaries. ‣ A broader look on societal wellbeing can modify the EU-US comparison substantially and yield very different conclusions on the relative performances over time. From 2010 2023, GDP per capita rose 25% in the United States (vs 17% in the EU). Yet the EU’s overall current wellbeing index increased by 9.5 percentage points while the US moved up by only 1.2 points. ‣ In terms of sustainable and inclusive wellbeing, the EU index improved by 4.0 percentage points in 2010-2023, while the US index declined by 0.5, highlighting the importance of factors like resources for the future, societal resilience, nature, inequalities, and institutional quality. ‣ The resources for the future index, however, is much higher in the US than in the EU, helped by the higher economic growth of the US. ‣ When GDP is adjusted for health and inequality, the EU comes out ahead: using an ‘equivalent income’ metric that incorporates life expectancy and income inequality, the EU surpassed the US by 2022
    Date: 2026–04
    URL: https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc146569
  5. By: Kabeer, Naila; Plomien, Ania
    JEL: N0
    Date: 2026–04
    URL: https://d.repec.org/n?u=RePEc:ehl:lserod:138143
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