Vanishing Happiness: How Does Pollution Information Disclosure Affect Life Satisfaction?

Area of Science:

• Environmental Policy
• Public Health
• Behavioral Economics

Background:

• Information plays a crucial role in shaping energy and environmental policies.
• Understanding the public's response to environmental information is vital for policy effectiveness.
• Residents' well-being is increasingly linked to environmental quality and information accessibility.

Purpose of the Study:

• To investigate the impact of pollution information disclosure on residents' life satisfaction in China.
• To identify the specific channels through which pollution information affects well-being.
• To analyze the heterogeneity of these effects across different demographic groups.

Main Methods:

• Utilized a difference-in-difference (DID) approach for causal inference.
• Integrated China Family Panel Studies (CFPS) data with PM2.5 information disclosure data.
• Conducted heterogeneity and mechanism analyses to explore influencing factors and pathways.

Main Results:

• PM2.5 information disclosure was found to have a significant negative impact on residents' life satisfaction.
• The negative effects were more pronounced among younger and middle-aged individuals, those in good health, highly educated, high-income earners, and urban dwellers.
• Perception, avoidance, and envy were identified as key mechanisms driving the observed effects.

Conclusions:

• Environmental information disclosure can negatively affect psychological well-being, necessitating careful policy design.
• Public policy should consider the differential psychological impacts on various population segments.
• Addressing the perception, avoidance, and envy channels is crucial for mitigating negative well-being outcomes from pollution information.