An Analysis of the Effects of Water Pollution on Life Satisfaction in Korea

Using the Korea Labor Institute Panel Study(KLIPS), this study investigates the impacts of water pollution on life satisfaction in Korea. Panel random-effects ordered probit model is used to consider the ordered property of life satisfaction data and heterogeneity of panel data. The proxy variables to reflect the degree of water pollution are biochemical oxygen demand(BOD) and total phosphorus(TP). In addition to the environmental variables above, other determinants used in various studies on life satisfaction such as economic, social, and demographic characteristics are included. Estimation results show that water pollution is negative and significant for life satisfaction. Other indicators such as income, age, house ownership, gender, education are positively related while urban residence and own business are shown to be negatively related.