The Inefficiency of the Neoclassical Paradigm in the Promotion of Subjective Well-Being and Socioeconomic, and Environmental Sustainability: An Empirical Test for the Spanish Case

Abstract

The recent literature developed in the field of happiness economics highlights the overvaluation of income and material prosperity as determinants of happiness, and calls into question many of the assumptions of traditional economic theory linked to "rationality" and the "non-satiety" of the consumer. This article aimed to study which factors explain individual subjective well-being, paying special attention to the role of income and the incidence of social variables and focusing on the case of Spain. As a novelty, this research introduces variables such as trust or the perception of justice, among others. Based on the analysis of the European Social Survey and through the estimation of an ordered logit, we find that, in line with the theory of happiness economics, the material aspects do not play a relevant role as explanatory of subjective well-being, unlike social aspects, such as sociability and trust in people (social capital). In addition, our results indicate that in the case of Spain, the most materialistic people are associated with a lower level of happiness. Thus, it seems that the excess of concern for material and economic issues in the pursuit of happiness undermines socioeconomic and environmental sustainability by causing the "wealth destruction effect". economic welfare [11]. The new approach questions a good part of the traditional assumptions of the economy [12].Despite Easterlin, several studies shed light along the same lines as neoclassical theory [13][14][15], emphasizing that the excessive consideration of income, status, and hedonic consumption in the promotion of subjective well-being were still very present in different fields, such as in the economy, sociology, marketing or advertising [16]. Moreover, it is the contemporary individual, as [17] expressed, who accepts the neoclassical, reductionist, and utilitarian paradigm, as a guide for his behavior.Our goal is to study the main determinants of happiness, paying special attention to the Easterlin paradox, thus, deepening the understanding of the question about what is the real role of income as a determinant of subjective well-being. To do this, we have analyzed not only economic but also social factors. Specifically, and as novelty, this study focused on the analysis of happiness in Spain for the period 2002-2014 and highlights the importance of social factors when talking about topics such as sustainability. In this regard, we should note that in recent times, it has become very important to study social factors to address the new challenges faced by society in the achievement of a sustainable development. Authors such as [18] highlight, as in the transitioning process towards a bioeconomy, the involvement of stakeholders and the enhancement of social capital, which may become helpful in the process of achieving social sustainability. In addition, [19] found that when analyzing green human resource management, the role of social sustainability has been less explored than other pillars of sustainability, such as economic or environme...

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“…From a perspective of sustainability welfare economics, subjective wellbeing includes "life satisfaction, happiness, and a combined life satisfaction and happiness index" in the context of sustainable development [71,72]. The most material aspects are not associated with a higher level of individual subjective well-being; on the contrary, the most materialistic people are those who revealed lower levels of happiness as well as associated socioeconomic and environmental sustainability [73,74]. Sustainability and subjective well-being are also strongly interrelated domains, especially environmental aspects of sustainability, such as biodiversity conservation, with connectedness to nature being positively correlated with subjective well-being and sustainable behavior [75].…”

Happy Sustainability: A Future Quest for More Sustainable Universities

“…A recent study also found that people high in materialism sought happiness via extrinsic unsustainable sources (Lee and Ahn 2016). Conversely, Membiela-Pollàn et al (2019) suggest that rampant materialism makes people less happy.…”

“…In cities and neighborhoods, empirical studies also suggest that self-reported happiness is related to sustainability across several indexes (Cloutier et al 2014;Souza et al 2019). On the other hand, some scholars have found higher happiness levels among people with greater environmental knowledge and concerns (Ferrer-i-Carbonell and Gowdy 2007;Membiela-Pollàn et al 2019). Supporting this premise, Cloutier and Pfeiffer (2015) have theorized a framework about the sustainability-happiness nexus.…”

Subjective Well-Being in Higher Education: Psychometric Properties of the Satisfaction with Life and Subjective Vitality Scales in Spanish University Students

“…In recent years, several studies have further explored the link between subjective well-being and social, economic and environmental sustainability, and there is an increasing interest in exploring the relationship between sustainability and quality of life [19][20][21][22][23][24][25]. For instance, Musa et al [25] designed a new instrument aimed to measure community well-being that fully integrated ecological, economic and social sustainability and found a significant relationship between the level of well-being and sustainable urban development, especially focusing on social sustainability.…”

“…For instance, Musa et al [25] designed a new instrument aimed to measure community well-being that fully integrated ecological, economic and social sustainability and found a significant relationship between the level of well-being and sustainable urban development, especially focusing on social sustainability. Findings from a recent study carried out in Spain suggest that excess of concern for material and economic pursuit is associated with lower levels of happiness and well-being and undermines social sustainability [19].…”