Pro-growth or limit-on: How environmental regulations affect residents' well-being

Abstract

This paper uses micro panel data based on the five-annual China Family Panel Survey (CFPS) to study the relationship between environmental regulation and residents' happiness. The results are as follows. Firstly, environmental regulation has a significant positive impact on residents' happiness. Secondly, Environmental regulation has the most significant impact on residents' happiness in eastern China. Thirdly, Environmental regulation can improve residents' happiness by reducing environmental pollution, reducing family health care expenditure, and improving social security. Finally, there is an inverted u-shaped relationship between environmental regulation and residents' happiness. Therefore, environmental regulation can be an effective way to improve residents' happiness. The government can implement appropriate environmental regulations to improve residents' happiness.