Economics of Happiness and Wellbeing
Nature and Wellbeing
What research shows about how access to green spaces and nature affects health and happiness, and how economists value it.
Spending time in nature, whether a city park, a forest or a beach, appears to improve people’s wellbeing. Economists and health researchers have tried to measure how much.
The evidence
- Life satisfaction: studies using large surveys, including research by George MacKerron and Susana Mourato using a smartphone app in the United Kingdom, found people reported being happier outdoors in natural environments than in urban ones.
- Time in nature: a study led by Mathew White found that people who spent at least 120 minutes a week in nature were significantly more likely to report good health and high wellbeing than those who spent none.
- Mental health: access to green space has been linked to lower stress and lower rates of some mental health problems.
- Physical health: parks encourage exercise.
Valuing green space
Because parks are usually free, their value does not appear in market prices. Economists use methods such as:
- House prices: homes near parks often sell for more, a method called hedonic pricing.
- Surveys asking what people would pay to protect green spaces.
- Wellbeing valuation, which estimates how much income would produce the same gain in life satisfaction as access to nature.
Inequality in access
Access to green space is unequal. Poorer neighbourhoods often have fewer parks, and they may be less safe or well maintained. This contributes to health inequalities. During COVID-19 lockdowns, differences in access to outdoor space became especially visible.
Accessibility
For blind and visually impaired people, nature can offer rich experiences through sound, touch and smell. Accessible parks with clear paths, tactile maps, audio guides and sensory gardens make these benefits available to everyone.
A city plans to replace a small park with a car park. Residents argue the park is valuable. Economists estimate that nearby homes are worth more because of the park, and that residents' wellbeing gains from using it are worth a substantial sum each year. When included in the decision, these benefits exceed the parking revenue.
Research links access to nature with better health and wellbeing, which reduce health costs and raise productivity. Green space is a valuable part of a city's infrastructure, not just decoration.
- People report higher wellbeing in natural environments.
- About 120 minutes a week in nature is linked to better health and wellbeing.
- Economists value green space through house prices, surveys and wellbeing valuation.
- Access is unequal, and accessible design lets everyone benefit.
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