Testing the affluence hypothesis: A cross-cultural analysis of the determinants of environmental action

This paper tests empirically the “affluence hypothesis” that states that the level of national income per capita influences the level of environmental concern expressed by the population. The hypothesis is tested in cross-sectional analyses of five aggregate variables measuring involvement in environmental protection. These variables are derived from answers to the World Values Survey (third wave). The interdisciplinary literature on the emergence of environmental awareness suggests that, in addition to national income, levels of education, subjective well-being, population density and income inequality may positively impact national preferences regarding environmental protection. The analysis conducted in this paper shows some statistical evidence of a U-shaped relationship between GDP per capita and some measures of environmental action. Furthermore, it is found that income inequality, education, population density and subjective well-being play a role in explaining cross-cultural differences in preferences over specific environmental actions. Overall the evidence included in this paper lends qualified support to the “affluence hypothesis.” However, it also indicates that involvement in environmental protection may be stronger in poorer countries than is commonly thought.