What Is the Role of Environmental Concern on Positional Behaviour?

Abstract

The main focus of this thesis is how concerns for environmental degradation relate to positional behaviour, and whether the association between subjective well-being and household income depend on individual level of environmental concern. The empirics of the thesis is based on micro panel data during the years 1992-2017. Using an interaction model, I find that the association between absolute and relative income measures and subjective well-being is weaker for people who are very concerned about the environment. Results are robust with respect to estimators and alternative measures of relative income position, and I further investigate individual heterogeneity based on known correlates of positional behaviour and variables expected to correlate with individual level of environmental concern. The paper briefly discusses the implications of the results with respect to environmental policy.