Economic and social development of Bangladesh: Miracle and challenges

Abstract

This chapter examines the determinants of life satisfaction among urban dwellers in two densely populated districts of Bangladesh, particularly how urban risk factors such as environmental risks affect individuals’ subjective well-being (SWB). Therefore self-reported happiness is analyzed as a function of perceived environmental quality, risk perceptions, and other conventional economic as well as non-economic variables such as interpersonal trust. The findings here, consistent with most international evidence, suggest that along with conventional variables, perceived environmental quality as well as road safety significantly affect SWB. More interestingly, the effect of an objective measure of neighborhood water quality diminishes when we control for perceived household water quality. These results have conventional policy implications for environmental policies.