Abstract
This exploratory study uses model-based cluster analysis to group sixty-one countries based on statistical similarities in terms of happiness, development, income, and carbon emissions. Model-based cluster analysis is appropriate for an initial identification of a pattern that is worthy of further investigation. A key finding is that there may be a Kuznets curve for happiness. The Kuznets curve graphs the proposition that, as an economy develops, economic inequality first increases and then decreases. Similarly, the authors find that clusters of countries at the extremes of the lowest and highest average levels of development and income have the highest self-reported levels of happiness. Clusters of countries in the middle of the development and income spectrum have the comparatively lowest average levels of happiness. Further, carbon emissions are not perfectly associated with happiness. For example, between two clusters with the highest average levels of development, income, and happiness there is a 43 % difference in carbon emissions. A highly developed cluster has roughly the same mean carbon emissions as a cluster with 83 % less income, and the least developed cluster has 93 % of the happiness as the most developed cluster yet 86 % less carbon emissions. Despite limitations of both data and methodology, the overall pattern—that there may be a happiness Kuznets curve and that development, income, and carbon emissions are not associated lockstep with happiness—contributes to the literature on decoupling development from growth in emissions.
Similar content being viewed by others
References
Akerlof, G. A., & Shiller, R. J. (2009). Animal spirits: How human psychology drives the economy, and why it matters for global capitalism. Princeton, NJ: Princeton University Press.
Apergis, N., & Ozturk, I. (2015). Testing environmental Kuznets curve hypothesis in Asian countries. Ecological Indicators, 52, 16–22.
Babcicky, P. (2013). Rethinking the foundations of sustainability measurement: The limitations of the environmental sustainability index (ESI). Social Indicators Research, 113(1), 133–157. doi:10.1007/s11205-012-0086-9.
Bates, W. (2009). Gross national happiness. Asian-Pacific Economic Literature, 23(2), 1–16.
Brown, L. R., & Plan B 3.0, & Earth Policy Institute. (2009). Plan B 4.0: Mobilizing to save civilization (1st ed.). New York: W.W. Norton.
Brundtland, G. H. (1987). Report of the world commission on environment and development: “our common future.”. New York: United Nations.
Commission on the Measurement of Economic Performance and Social Progress, Stiglitz, J. E., Sen, A., & Fitoussi, J. P. (2009). Report by the commission on the measurement of economic performance and social progress.
Csikszentmihalyi, M. (1999). If we are so rich, why aren’t we happy? American Psychologist, 54(10), 821–827.
Cummins, R. A. (1995). On the trail of the gold standard for life satisfaction. Social Indicators Research, 35(2), 179–200. doi:10.1007/BF01079026.
Cummins, R. A. (1998). The second approximation to an international standard of life satisfaction. Social Indicators Research, 43(3), 307–334. doi:10.1023/A:1006831107052.
Cummins, R. A., Li, L., Wooden, M., & Stokes, M. (2014). A demonstration of set-points for subjective wellbeing. Journal of Happiness Studies, 15, 183–206. doi:10.1007/s10902-013-9444-9.
Diener, E. (2000). Subjective well-being: The science of happiness and a proposal for a national index. American Psychologist, 55(1), 34.
Diener, E., & Oishi, S. (2000). Money and happiness: Income and subjective well-being across nations. In E. Diener & E. M. Suh (Eds.), Culture and subjective well-being (pp. 185–218). Cambridge, MA: MIT Press.
Dietz, T., Rosa, E. A., & York, R. (2009). Environmentally efficient well-being: Rethinking sustainability as the relationship between human well-being and environmental impacts. Human Ecology Review, 16(1), 114–123.
Dietz, T., Rosa, E. A., & York, R. (2012). Environmentally efficient well-being: Is there a Kuznets curve? Applied Geography, 32(1), 21–28.
Edmands, A. (2011). Does the stock market fully value intangibles? Employee satisfaction and equity prices. Journal of Financial Economics, 101, 621–640.
Edmands, A. (2012). The link between job satisfaction and firm value, with implications for corporate social responsibility. Academy of Management Perspectives, 26(4), 1–19.
Erdogan, B., Bauer, T. N., Truxillo, D. M., & Mansfield, L. R. (2012). Whistle while you work a review of the life satisfaction literature. Journal of Management, 38(4), 1038–1083.
Ferrer-i-Carbonell, A., & Frijters, P. (2004). How important is methodology for the estimates of the determinants of happiness? The Economic Journal, 114(497), 641–659.
Fraley, C., & Raftery, A. E. (2002). Model-based clustering, discriminant analysis, and density estimation. Journal of the American Statistical Association, 97(458), 611–631.
Fraley, C., & Raftery, A. E. (2006). MCLUST version 3: An R package for normal mixture modeling and model-based clustering. Seattle: Washington University Seattle Dept of Statistics.
Government Accountability Office. (2011). Key indicator systems: Experiences of other national and sub-national systems offer insights for the United States. Washington: GAO.
Graham, Carol. (2012). The pursuit of happiness: An economy of well-being. Washington, DC: Brookings Institution Press.
Grossman, G., & Krueger, A. (1995). Economic growth and the environment. Quarterly Journal of Economics, 110, 353–377.
Gundelach, P., & Kreiner, S. (2004). Happiness and life satisfaction in advanced European countries. Cross-Cultural Research, 38(4), 359–386.
Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2006). Multivariate data analysis (6th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
Helliwell, J., Layard, R., & Sachs, J. (Eds.). (2012). World happiness report. New York: The Earth Institute, Columbia University.
Helliwell, J., Layard, R., & Sachs, J. (Eds.). (2013). World happiness report. New York: The Earth Institute, Columbia University.
Helliwell, J., Layard, R., & Sachs, J. (Eds.). (2015). World happiness report. New York: The Earth Institute, Columbia University.
Hervás, G., & Vázquez, C. (2013). Construction and validation of a measure of integrative well-being in seven languages: The Pemberton happiness index. Health and Quality of Life Outcomes, 11(1), 66–79.
IPCC. (2007). Report of the nineteenth session of the intergovernmental panel on climate change (IPCC). Geneva: Switzerland.
Jahan, S. (2004). Measuring human development: Evolution of the human development index. Journal of Social Studies—Dhaka, 21–42.
KPMG. (2011). KPMG international survey of corporate responsibility reporting 2011. Switzerland: KPMG, http://www.kpmg.com/PT/pt/IssuesAndInsights/Documents/corporate-responsibility2011.pdf.
Kuznets, S. (1934). National Income 1929–1932. A report to the U.S. Senate, 73rd Congress, 2nd Session. Washington, DC: US Government Printing Office.
Kuznets, S. (1955). Economic growth and income inequality. American Economic Review, 45, 1–28.
Layard, R. (2006). Happiness and public policy: A challenge to the profession. The Economic Journal, 116(510), C24–C33.
Li, V., & Lang, G. (2010). China’s “Green GDP” experiment and the struggle for ecological modernisation. Journal of Contemporary Asia, 40(1), 44–62.
Lovelock, J. (2006). The revenge of gaia: Earth’s climate in crisis and the fate of humanity. New York: Basic Books.
Lovelock, J. (2010). The vanishing face of gaia: A final warning (Pbk ed.). New York: Basic Books.
Maslow, A. H. (1943). A theory of human motivation. Psychological Review, 50(4), 370–396.
McKibben, B. (2010). Earth: Making a life on a tough new planet (1st ed.). New York: Times Books.
New Economics Foundation. (2015). Happy planet index, http://www.happyplanetindex.org.
Ott, J. C. (2011). Government and happiness in 130 nations: Good governance fosters higher level and more equality of happiness. Social Indicators Research, 102(1), 3–22.
R Development Core Team (2013). R: A language and environment for statistical computing. R Foundation for Statistical Computing, Vienna, http://www.R-project.org/.
Ray, M. (2014). Redefining the human development index to account for sustainability. Atlantic Economic Journal, 42(3), 305–316.
Reiskin, E. D., White, A. L., Johnson, J. K., & Votta, T. J. (2008). Servicizing the chemical supply chain. Journal of Industrial Ecology, 3(2–3), 19–31.
Rothenberg, S. (2007). Sustainability through servicizing. MIT Sloan Management Review, 48(2), 83–91.
Selden, T. M., Song, D. (1994). Environmental quality and development: Is there a Kuznets curve for air pollution emissions? Journal of Environmental Economics and Management, 27(2), 147–162.
Sen, Amartya K. (1977). Rational fools: A critique of the behavioral foundations of economic theory. Philosophy and Public Affairs, 6(4), 317–344.
Senge, P. M. (2006). The fifth discipline : The art and practice of the learning organization. New York: Doubleday/Currency.
Senge, P. M., Smith, B., Kruschwitz, N., Laur, J., & Schley, S. (2008). The necessary revolution: How individuals and organizations are working together to create a sustainable world. New York: Crown Business.
Shafik, N. (1994). Economic development and environmental quality: An econometric analysis. Oxford Economic Papers, 46, 757–773.
Shiller, R. J. (2006). Irrational exuberance (2nd ed.). New York: Doubleday/Currency.
Steinberger, J. K., & Roberts, J. T. (2010). From constraint to sufficiency: The decoupling of energy and carbon from human needs, 1975–2005. Ecological Economics, 70(2), 425–433.
Stern, D. I. (2004). The rise and fall of the environmental Kuznets curve. World Development, 32(8), 1419–1439.
Stern, D. I., Common, M. S., & Barbier, E. B. (1996). Economic growth and environmental degradation: The environmental Kuznets curve and sustainable development. World Development, 24(7), 1151–1160.
Tan, C.-M. (2012). Search inside yourself. New York: Harper Collins.
Tideman, S. G. (2011). Gross national happiness. In L. Zsolnai (Ed.), Ethical principles and economic transformation—A Buddhist perspective 30 (pp. 133–153). Amsterdam: Springer.
Walsh, C., & Sulkowski, A. J. (2010). A Greener Company makes for happier employees more so than does a more valuable one: A regression analysis of employee satisfaction, perceived environmental performance and firm financial value. Interdisciplinary Environmental Review, 11(4), 274–282.
White, A. L., Stoughton, M., & Feng, L. (1999). Servicizing: The quiet transition to extended product responsibility. Tellus Institute, Boston, http://infohouse.p2ric.org/ref/17/16433.pdf.
White, D. S., & Sulkowski, A. J. (2010). Relative ecological footprints based on resource usage efficiency per capita: Macro-level segmentation of 121 countries. International Journal of Sustainable Economy, 2(2), 224–240.
WIN/Gallup International Association. (2015). End of year survey, http://www.wingia.com/en/survey/end_of_year_survey.
Yang, H., He, J., & Chen, S. (2015). The fragility of the environmental Kuznets curve: Revisiting the hypothesis with Chinese data via an “Extreme Bound Analysis”. Ecological Economics, 109, 41–58.
Yin, J., Zheng, M., & Chen, J. (2015). The effects of environmental regulation and technical progress on CO2 Kuznets curve: An evidence from China. Energy Policy, 77, 97–108.
Zurick, D. (2006). Gross national happiness and environmental status in Bhutan. Geographical Review, 96(4), 657–681.
Author information
Authors and Affiliations
Corresponding author
Appendices
Appendix 1
Country data, listed by level of happiness
Country | Net Happiness | Happiness (% of max) | CO2 | CO2 (% of max) | HDI | HDI (% of max) | GNI | GNI (% of max) |
---|---|---|---|---|---|---|---|---|
Fiji | 85 | 100 | 1.5 | 9 | 0.70 | 75 | 3670 | 5 |
Nigeria | 84 | 99 | 0.5 | 3 | 0.47 | 50 | 1240 | 2 |
Netherlands | 77 | 91 | 11.0 | 62 | 0.92 | 98 | 48,530 | 66 |
Colombia | 73 | 86 | 1.6 | 9 | 0.72 | 77 | 5460 | 7 |
Ghana | 72 | 85 | 0.4 | 2 | 0.56 | 59 | 1260 | 2 |
Switzerland | 69.5 | 82 | 5.0 | 28 | 0.91 | 97 | 73,680 | 100 |
Finland | 69 | 81 | 11.5 | 66 | 0.89 | 95 | 47,140 | 64 |
Philippines | 69 | 81 | 0.9 | 5 | 0.65 | 70 | 2060 | 3 |
Brazil | 68.5 | 81 | 2.2 | 12 | 0.73 | 78 | 9520 | 13 |
Malaysia | 68 | 80 | 7.7 | 44 | 0.77 | 82 | 8150 | 11 |
Saudi Arabia | 66 | 78 | 17.0 | 97 | 0.78 | 83 | 19,360 | 26 |
Denmark | 64 | 75 | 8.3 | 48 | 0.90 | 96 | 59,590 | 81 |
Iceland | 63.5 | 75 | 6.2 | 35 | 0.91 | 97 | 33,900 | 46 |
Uzbekistan | 62 | 73 | 3.7 | 21 | 0.65 | 70 | 1300 | 2 |
Azerbaijan | 60 | 71 | 5.1 | 29 | 0.73 | 78 | 5370 | 7 |
Peru | 59.5 | 70 | 2.0 | 11 | 0.74 | 79 | 4720 | 6 |
Ecuador | 58.5 | 69 | 2.2 | 12 | 0.72 | 77 | 4330 | 6 |
Spain | 55 | 65 | 5.9 | 33 | 0.89 | 94 | 31,420 | 43 |
Armenia | 53 | 62 | 1.4 | 8 | 0.73 | 78 | 3330 | 5 |
Germany | 52.5 | 62 | 9.1 | 52 | 0.92 | 98 | 43,300 | 59 |
Austria | 51 | 60 | 8.0 | 45 | 0.90 | 95 | 47,060 | 64 |
Singapore | 50 | 59 | 2.7 | 15 | 0.90 | 95 | 42,530 | 58 |
Sweden | 50 | 59 | 5.6 | 32 | 0.92 | 98 | 50,860 | 69 |
Japan | 49 | 58 | 9.2 | 52 | 0.91 | 97 | 42,190 | 57 |
Canada | 47.5 | 56 | 16.2 | 92 | 0.91 | 97 | 43,250 | 59 |
Belgium | 44 | 52 | 10.0 | 57 | 0.90 | 96 | 45,840 | 62 |
Korea, Rep (South) | 43.5 | 51 | 11.5 | 65 | 0.91 | 97 | 19,720 | 27 |
India | 40.5 | 48 | 1.7 | 9 | 0.55 | 59 | 1290 | 2 |
Bosnia and Herzegovina | 39.5 | 46 | 8.1 | 46 | 0.74 | 78 | 4640 | 6 |
Australia | 39 | 46 | 16.9 | 96 | 0.94 | 100 | 46,310 | 63 |
Mozambique | 39 | 46 | 0.1 | 1 | 0.33 | 35 | 430 | 1 |
France | 38 | 45 | 5.6 | 32 | 0.89 | 95 | 42,280 | 57 |
Cameroon | 36 | 42 | 0.4 | 2 | 0.50 | 53 | 1130 | 2 |
Macedonia | 35.5 | 42 | 5.2 | 29 | 0.74 | 79 | 4580 | 6 |
South Africa | 35 | 41 | 9.2 | 52 | 0.63 | 67 | 6100 | 8 |
USA | 33.5 | 39 | 17.6 | 100 | 0.94 | 100 | 48,960 | 66 |
Kenya | 32.5 | 38 | 0.3 | 2 | 0.52 | 55 | 800 | 1 |
Russian Federation | 31.5 | 37 | 12.2 | 70 | 0.79 | 84 | 10,000 | 14 |
Vietnam | 30.5 | 36 | 1.7 | 10 | 0.62 | 66 | 1270 | 2 |
Bulgaria | 29.5 | 35 | 5.9 | 34 | 0.78 | 83 | 6320 | 9 |
Tunisia | 29.5 | 35 | 2.5 | 14 | 0.71 | 76 | 4150 | 6 |
Ukraine | 29 | 34 | 6.6 | 38 | 0.74 | 79 | 2990 | 4 |
Moldava | 28 | 33 | 1.4 | 8 | 0.66 | 70 | 1820 | 2 |
Pakistan | 28 | 33 | 0.9 | 5 | 0.52 | 55 | 1060 | 1 |
Hong Kong | 27.5 | 32 | 5.2 | 29 | 0.91 | 97 | 33,630 | 46 |
China | 27 | 32 | 6.2 | 35 | 0.70 | 75 | 4240 | 6 |
UK | 27 | 32 | 7.9 | 45 | 0.88 | 93 | 38,690 | 53 |
Georgia | 25 | 29 | 1.4 | 8 | 0.75 | 79 | 2680 | 4 |
Czech Republic | 24.5 | 29 | 10.6 | 60 | 0.87 | 93 | 18,370 | 25 |
Turkey | 24.5 | 29 | 4.1 | 24 | 0.72 | 77 | 9980 | 14 |
Morocco | 24 | 28 | 1.6 | 9 | 0.59 | 63 | 2880 | 4 |
Italy | 23 | 27 | 6.7 | 38 | 0.88 | 94 | 35,520 | 48 |
Ireland | 18 | 21 | 8.9 | 51 | 0.92 | 98 | 42,810 | 58 |
Poland | 18 | 21 | 8.3 | 47 | 0.82 | 88 | 12,400 | 17 |
Serbia | 14.5 | 17 | 6.3 | 36 | 0.77 | 82 | 5550 | 8 |
Iraq | 12 | 14 | 3.7 | 21 | 0.59 | 63 | 4380 | 6 |
Lithuania | 9 | 11 | 4.1 | 23 | 0.82 | 87 | 11,620 | 16 |
Portugal | 8 | 9 | 4.9 | 28 | 0.82 | 87 | 21,870 | 30 |
Egypt | 0 | 0 | 2.6 | 15 | 0.66 | 71 | 2550 | 3 |
Romania | −10 | −12 | 3.7 | 21 | 0.79 | 84 | 8010 | 11 |
Lebanon | −12.5 | −15 | 4.7 | 27 | 0.75 | 79 | 8360 | 11 |
Appendix 2
Countries and associated data listed by cluster
Country | Happiness | CO2 per capita | HDI | GNI per capita | Cluster |
---|---|---|---|---|---|
Fiji | 85 | 1.499937 | 0.702 | 3670 | 1 |
Nigeria | 84 | 0.494091 | 0.471 | 1240 | 1 |
Colombia | 73 | 1.629452 | 0.719 | 5460 | 1 |
Ghana | 72 | 0.370888 | 0.558 | 1260 | 1 |
Philippines | 69 | 0.873148 | 0.654 | 2060 | 1 |
Uzbekistan | 62 | 3.656678 | 0.654 | 1300 | 1 |
Peru | 59.5 | 1.967658 | 0.741 | 4720 | 1 |
Ecuador | 58.5 | 2.175598 | 0.724 | 4330 | 1 |
Armenia | 53 | 1.424236 | 0.729 | 3330 | 1 |
India | 40.5 | 1.666209 | 0.554 | 1290 | 1 |
Mozambique | 39 | 0.120258 | 0.327 | 430 | 1 |
Cameroon | 36 | 0.350799 | 0.495 | 1130 | 1 |
Kenya | 32.5 | 0.303782 | 0.519 | 800 | 1 |
Vietnam | 30.5 | 1.728118 | 0.617 | 1270 | 1 |
Tunisia | 29.5 | 2.453102 | 0.712 | 4150 | 1 |
Moldova | 28 | 1.363005 | 0.66 | 1820 | 1 |
Pakistan | 28 | 0.932118 | 0.515 | 1060 | 1 |
Georgia | 25 | 1.401643 | 0.745 | 2680 | 1 |
Morocco | 24 | 1.599383 | 0.591 | 2880 | 1 |
Iraq | 12 | 3.703433 | 0.59 | 4380 | 1 |
Egypt | 0 | 2.622791 | 0.662 | 2550 | 1 |
Brazil | 68.5 | 2.150268 | 0.73 | 9520 | 2 |
Malaysia | 68 | 7.667467 | 0.769 | 8150 | 2 |
Azerbaijan | 60 | 5.050749 | 0.734 | 5370 | 2 |
Bosnia and Herzegovina | 39.5 | 8.093102 | 0.735 | 4640 | 2 |
Macedonia | 35.5 | 5.171997 | 0.74 | 4580 | 2 |
South Africa | 35 | 9.204085 | 0.629 | 6100 | 2 |
Russian Federation | 31.5 | 12.2255 | 0.788 | 10,000 | 2 |
Bulgaria | 29.5 | 5.930052 | 0.782 | 6320 | 2 |
Ukraine | 29 | 6.644867 | 0.74 | 2990 | 2 |
China | 27 | 6.194858 | 0.699 | 4240 | 2 |
Turkey | 24.5 | 4.131031 | 0.722 | 9980 | 2 |
Poland | 18 | 8.308632 | 0.821 | 12,400 | 2 |
Serbia | 14.5 | 6.303584 | 0.769 | 5550 | 2 |
Lithuania | 9 | 4.12574 | 0.818 | 11,620 | 2 |
Romania | −10 | 3.673158 | 0.786 | 8010 | 2 |
Lebanon | −12.5 | 4.700013 | 0.745 | 8360 | 2 |
Netherlands | 77 | 10.95836 | 0.921 | 48,530 | 3 |
Finland | 69 | 11.53084 | 0.892 | 47,140 | 3 |
Germany | 52.5 | 9.114842 | 0.92 | 43,300 | 3 |
Singapore | 50 | 2.663192 | 0.895 | 42,530 | 3 |
Japan | 49 | 9.185651 | 0.912 | 42,190 | 3 |
Canada | 47.5 | 16.22 | 0.911 | 43,250 | 3 |
Belgium | 44 | 9.999147 | 0.897 | 45,840 | 3 |
Australia | 39 | 16.90802 | 0.938 | 46,310 | 3 |
USA | 33.5 | 17.56416 | 0.937 | 48,960 | 3 |
Ireland | 18 | 8.939753 | 0.916 | 42,810 | 3 |
Switzerland | 69.5 | 4.952968 | 0.913 | 73,680 | 4 |
Denmark | 64 | 8.346405 | 0.901 | 59,590 | 4 |
Iceland | 63.5 | 6.168529 | 0.906 | 33,900 | 4 |
Spain | 55 | 5.853466 | 0.885 | 31,420 | 4 |
Austria | 51 | 7.973648 | 0.895 | 47,060 | 4 |
Sweden | 50 | 5.599744 | 0.916 | 50,860 | 4 |
France | 38 | 5.555374 | 0.893 | 42,280 | 4 |
Hong Kong | 27.5 | 5.16623 | 0.906 | 33,630 | 4 |
UK | 27 | 7.925093 | 0.875 | 38,690 | 4 |
Italy | 23 | 6.717667 | 0.881 | 35,520 | 4 |
Saudi Arabia | 66 | 17.03991 | 0.782 | 19,360 | 5 |
Korea, Rep (South) | 43.5 | 11.48689 | 0.909 | 19,720 | 5 |
Czech Republic | 24.5 | 10.62301 | 0.873 | 18,370 | 5 |
Rights and permissions
About this article
Cite this article
Sulkowski, A., White, D.S. A happiness Kuznets curve? Using model-based cluster analysis to group countries based on happiness, development, income, and carbon emissions. Environ Dev Sustain 18, 1095–1111 (2016). https://doi.org/10.1007/s10668-015-9689-z
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10668-015-9689-z