Examining the Impact of Uncertainties and Economic Vulnerability on Happiness and Ecological Footprint Using a Panel SUR Approach
Ali Dhahi Najm
1
(
PhD Student in Economics, Department of Economics, Faculty of Economics and Management, Urmia University, Urmia, Iran
)
Samad Hekmati Farid
2
(
)
Ali Rezazadeh
3
(
Department of Economics, Urmia University, Urmia, Iran
)
یوسف محمدزاده
4
(
استادیار اقتصاد دانشگاه ارومیه
)
Keywords: Economic Risk, Economic Vulnerability, Happiness, Environmental Quality,
Abstract :
Abstract
Today, national economies face numerous risks and vulnerabilities that can have significant consequences. It is of great importance to examine these consequences on the components of quality of life. This study, using data from 32 emerging countries between 2014 and 2022 and applying a System GMM-Panel SUR approach, investigates the impact of economic risks and vulnerabilities on happiness and environmental degradation. The results show that economic risks and vulnerabilities have a negative impact on happiness and an exacerbating effect on the ecological footprint. Therefore, economic vulnerabilities and risks are among the most important factors weakening the quality of life of citizens in developing countries. Urbanization and government expenditures, on the one hand, have improved happiness, but on the other hand, have also intensified the ecological footprint. While providing welfare facilities and economic prosperity brings citizen satisfaction, if it is accompanied by the weakening of natural resources and the environment, it may seriously endanger the sustainability of the development path. Good governance indicators such as control of corruption, rule of law, and accountability and democracy, on the one hand, bring peace and reassurance to citizens and thus strengthen the happiness index, and on the other hand, prevent environmental degradation by individuals and institutions. This study emphasizes the necessity of simultaneously considering the economic, social, and environmental dimensions in designing sustainable development policies.
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