Session 4 - Seminar on research models and methods in economics

Issaka Dialga, University of the West Indies
"Greening happiness: Policy pathways to sustainable resource use and enhanced quality of life"

This paper examines the relationship between the consumption of natural resources and human happiness, paying particular attention to the role of institutional quality. Using panel data from 128 countries over a period of 18 years, we combine measures of subjective well-being, such as life satisfaction and positive and negative affect, with ecological footprint indicators in order to evaluate the sustainability of well-being outcomes. Our results reveal significant heterogeneity. In high-income countries, resource consumption tends to enhance happiness; in low-income countries, however, the effect is negligible or absent. Institutional quality emerges as a key moderator: countries with strong governance, low corruption and an effective rule of law benefit more from resource use in terms of well-being, whereas those with weak institutions often experience negative outcomes. We also find that happiness is more positively associated with renewable resources than with non-renewable ones. These findings lend weight to the notion that the resource curse has implications for more than just economic indicators, extending to subjective well-being as well. The paper provides a theoretical framework for identifying optimal levels of happiness within ecological constraints and highlights policy pathways to promote sustainable well-being through improved governance and differentiated strategies in different country contexts.