The Effect of Environmental Degradation, Climate Change, and the European Green Deal Tools on Life Satisfaction

Abstract

Environmental issues, sustainability, and climate change have become the targets of many policies from international and governmental organizations including the EU's European Green Deal action plan. This plan provides tools to address them-which include support for the circular economy, implementation of energy and environmental taxes, and investment in environmental protection-with the aim of favoring the well-being of EU citizens. In this context, this study analyses the impact of several parameters (environmental matters, global warming, circular economy, energy and environmental taxes, and expenditure and investment on the environment) on life satisfaction, or subjective well-being, and their effects on 33 European countries. For this purpose, four econometric models were carried out using data collected from the World Values Survey (WVS), the European Values Study (EVS), and the World Bank and Eurostat, reflecting subjective citizen satisfaction data. The findings present a highly significant inverse relationship between life satisfaction variables and both environmental problems and energy taxes. Additionally, there is a highly significant positive relationship between circular economy, environmental tax, and environmental protection expenditure parameters and life satisfaction variables, as well as, to a lesser degree of significance, with noise pollution from neighbours.