Determinants of Life Satisfaction and Happiness Empirical Evidence from an Emerging Economy

Abstract

This study aims to highlight the determinants of life satisfaction and happiness in an emerging economy characterized by a poor air quality index. In Pakistan lifestyle, pleasure, and happiness tendencies constantly accelerated after 2000. Based on existing literature this study focused on testing the effect of carbon emission, business density, fossil fuel energy consumption, renewable energy consumption, innovation and development, social contribution, and economic development on the life satisfaction and happiness of people living in Pakistan. The data for the selected variables were retrieved from the World Happiness Report 2020 and the online database of the World Bank from 2000 to 2020.  The results of the LASSO version of regression revealed that social contribution, innovation and development, and business density index have significant effects on life satisfaction and happiness. Whereas life satisfaction and happiness are negatively influenced by carbon emission, fossil fuel consumption, renewable energy consumption, and economic development.  This research has the potential to benefit all contributors to society because it offers deep insights into how green technology develops. The insights generated from these studies can tell policies geared toward reducing environmental harm and improving social welfare