The purpose of this paper is to measure the evaluation of income inequality by European citizens. Starting from the concept of a social welfare function defined on income distributions the paper estimates the degree and nature of inequality aversion of Europeans. It uses subjective well-being...

This paper theoretically and empirically investigates the hypothesis of decision error in environmental-friendly consumption. Existing evidence suggests that people make systematic mistakes in affective forecasting that lead to suboptimal decisions. The paper hypothesizes that such errors are...

This paper investigates the determinants of pro-environmental consumption, focusing on the role of reference groups and routine behavior. We study the factors that explain whether or not people have installed residential solar energy equipment or have subscribed to green-electricity programs,...

In addition to standard methods of environmental valuation, a novel approach has recently emerged which models individuals' self-rated happiness as a function of their incomes and the prevailing environmental conditions. The estimated relationship is used to calculate the trade-off people would...

In this paper a simulation model of the West European power plant industry, combined with transboundary source-receptor relationships, is used to determine cost-effective reduction rates for SO2 emissions in any one country so that certain, exogenously given, deposition reduction targets are...

The social costs of unemployment, in terms of unemployment's impact on European citizens' life satisfaction, relate strongly to unemployment duration. At any level of general joblessness, reducing long-term unemployment is more important than reducing the number of people unemployed at any point...

Previous literature has identified considerable non-pecuniary costs to macroeconomic fluctuation and uncertainty. The present paper investigates whether and to what extent labor market institutions can mitigate those costs. We study how life satisfaction of European citizens is affected by...