Where is the “wellbeing dividend”? Nature, structure and consumption inequalities

Recent interest in wellbeing has important ramifications for sustainable development. This paper describes the so-called wellbeing paradox: the existence of stationary or declining levels of subjective wellbeing, despite growing income and consumption levels. This paradox suggests the existence of a “wellbeing dividend” that could flow from more sustainable societies: the potential to reduce or redistribute consumption, without compromising levels of wellbeing. Numerical analysis to support this view is presented using data on consumer expenditure and reported life satisfaction across 27 European countries. The results indicate that certain categories of consumer expenditure may already deliver negative returns to scale in terms of life satisfaction. The paper offers two different kinds of “explanation” for continued consumption growth (one based in human nature and the other in social structure) and illustrates how these “lock us in” to more unequal, less sustainable societies. Finally, the author explores some potential “solution spaces” in the search for sustainability.