The effect of environmental and economic factors on happiness

The study investigated the effects of environmental and economic factors on happiness. For this purpose, the happiest ten and the unhappy ten countries in the 2023 World Happiness Report were determined and two models were established and tested separately between the groups with new generation panel data analysis techniques between 2008 and 2022. Unlike other studies, interaction variables were obtained with the help of opposite-direction variables and the effects of some factors were reversed. According to the findings, there is a relationship between the stationary variables. In the happy country group, environmental factors reduce happiness, while economic factors increase happiness. However, with the interaction variable of ecological footprint*human development, the effect of the environmental factor on happiness was reversed and became positive. The reversal of this direct effect is striking. In the unhappy country group, there is no relationship between environmental factors and happiness, while economic factors reduce happiness. In this context, human happiness should not be ignored when determining economic policies. It can be recommended that investors invest in sectors that will not cause environmental destruction. In order to increase happiness, happy and unhappy countries can be compared and needs and priorities can be determined.