The Easterlin Paradox, formulated by Richard Easterlin formulated in 1974, describes the evident contradiction between increased national wealth and increased average happiness levels. While individuals with higher incomes tend to report higher happiness levels within a specific time frame, a country’s average happiness does not necessarily increase over time as its overall income grows.  We apply common corelation between accumulated wealth and happiness.  People with higher incomes tend to be happier than those with lower incomes.

Despite the positive correlation within a point in time, the average happiness levels in a country do not consistently increase as the country’s overall income rises. This is the paradoxical part: while individuals may be happier at higher income levels, the overall happiness level of a country doesn’t necessarily follow fit as the country’s income grows. 

Richard Easterlin, then professor of economics at the University of Pennsylvania is the first economist to study happiness data. The paradox states that at a point in time happiness varies directly with income both among and within nations, but over time happiness does not trend upward as income continues to grow. Higher incomes don’t produce greater happiness over time. One explanation is that one’s happiness depends on a variety of other factors such as family and social connect, pollution less environment, hobbies of life, sufficient food, get together with friends etc.

In the short run, everyone perceives increases in income to be correlated with happiness and tries to increase their incomes. However, in the long run, this proves to be an illusion, since everyone’s efforts to raise standards of living lead to increasing averages, leaving everyone in the same place in terms of relative income. Various theories have been advanced to explain the paradox, but the paradox itself is solely an empirical theory. The existence of the paradox has been strongly disputed by other researchers.

Richard Easterlin has updated the evidence and description of the paradox over time. His most recent contribution is from 2022. This article is corelation between Easterlin’s Paradox and happiness index.  

According to the World Happiness Report and various other sources, Finland is consistently ranked as the happiest country in the world. In the 2025 report, Finland has been ranked number one for the eighth year in a row. Possibly, this happiness comes because Finns enjoy simple pleasures like clean air, pure water and walking around the woods, they enjoy their lives to the fullest. They enjoy a calm and peaceful life. it’s their appreciation for how things work and the ability to pause and admire the little things in life. In Finland, anyone can pick berries, collect mushrooms or fish with a simple fishing rod. It is part of  each citizen’s rights, which state that everyone is free to enjoy nature responsibly. Finland is cleanest in the world. The food that grows wild is delicious and fresh. Finding the luxury produce in the wild  like porcini mushrooms or cloud berries is considered a delightful moment and makes for an even more heavenly dinner. Finnish happiness is explained by the high levels of trust and freedom in its society, which research shows contributes to well-being and productivity.

In the 2025 World Happiness Report, Afghanistan consistently ranks as the unhappiest country in the world. Specifically, in the 2025 report, it is ranked 147th out of 147 countries. This ranking indicates that Afghanistan has the lowest happiness score and experiences the most frequent negative emotions, as well as the lowest frequency of positive emotions. 

The World Happiness Index Report is an annual publication of the United Nations Sustainable Development Solutions Network which contains rankings of national happiness and analysis of the data from various perspectives. The first World Happiness Report was released in April 2012. In a high-level meeting of UN well-being and Happiness were defined as new economic paradigms which drew international attention.

An Internet report suggested that if you want happiness, buy a scarf and gloves and head to Norway to experience real happiness.  Norway is well-known for its good public services and political stability. Denmark is another country which is famous for happiness nurtured in its culture. Danes have a stable government, little public corruption, and access to high-quality education and health care. The country does have the highest taxes in the world, but the citizens happily pay the taxes because they believe higher taxes can create a better society. Let’s understand what Happiness Index is.

What makes people of a country happy? Is it economy? Is it environment? Is it education? Is it government policies? We’ll all of these do contribute to people’s happiness in a country. But it is not necessary to be higher economic pace and growth always. People are happier when they don’t experience inequality in distribution of wealth; people don’t mind paying taxes when there is fairness in tax structure. People are happy when government practices transparency in the implementing policies. People want safety, people want welfare, people want gooinfrastructure, hygiene and people want good quality education.

Corruption undermines government revenue and, therefore, limits the capacity of the government to invest in productive areas.  Corruption distorts the decision-making in public investment projects. It’s been observed the higher the level of corruption in a country, the larger the share of its economic activity that will go subversive, beyond the reach of the tax authorities. Corruption discourages entrepreneurship and innovation; it only encourages inefficiency. It dislocates the human resources.  It creates uncertainty among the citizens. And it diminishes legitimacy in all walks of life and increases crimes.

In all countries there are rich and poor; but when the levels of inequality are low, and the welfare systems are strong, the citizens are happy. People don’t mind paying higher taxes for living a happier life.

The report primarily uses data from the Gallup World Poll. Gallup is a credible polling organization. It is respected highly in media. Nevertheless, all research including polling have some weaknesses which depend on the various methodologies and details of the poll and its questionnaires. Each research has few statistical limitations. Gallup ensures that each annual report is available to the public to download on the World Happiness Report website.

Happiness index is measured using parameters like Housing, Income, Work, Community, Civic Engagement, Education, Environment, Health, Life Satisfaction, Safety and Life-Work balance etc. Each report is organized by chapters that delve deeper into issues relating to happiness. The chapters also include mental illness, the objective benefits of happiness, the importance of ethics, policy implications which lead to subjective wellbeing. The report is based on how strong a country’s social foundation and social trust is.

Bhutan is one of the Buddhist Kingdoms in the World and so far, has preserved much of their culture since the 17th century. Even with globalization, Bhutan follows its Buddhist culture. It allows a certain number of foreigners into the country each year, and the two hundred dollars a day that must be paid by every traveller is a deterrent for many. Internet, television, and western dress were banned from the country up until ten years ago. But over the past ten years globalization has proved to be a challenge to this tiny nation. Things have begun to change, but they are trying to balance things in their own way.

Bhutan is the only country in the world that has a ‘GNH’ which is “Gross National Happiness.” The process of measuring GNH began when Bhutan opened to globalization. It measures people’s quality of life and makes sure that both material and spiritual development happen together in its citizen’s lives. Bhutan has balanced it rightly so far

Conclusion

Happiness is very important to both individuals and as a country. A happy individual is productive and creative. As human beings, although we possess cognitive abilities and are highly “thought” oriented, the quality of our lives is determined by our emotions. The Easterlin Paradox states happiness varies directly with income, both among and within nations, but over time the long-term growth rates of happiness and income are not significantly related. The principal reason for the contradiction is social comparison. A happy human is emotionally strong because happiness protects heart, it strengthens immune system, it helps in combating stress, it found that happy people have fewer aches and pains. The idea that “money can’t buy happiness” is a widely held belief, often attributed to the belief that true happiness comes from things like relationships, personal fulfilment, and a sense of purpose. .  In  the World Happiness Report 2025, India is ranked 118th out of 147 countries.

The concept of sustainable tourism is gaining lot of importance all over the world. Sustainable tourism means making a positive impact as a tourist in the place of visit. As a tourist wherever we go, we must try to maintain the place uninterrupted, especially without dirtying it.  More countries and regions are trying their best to develop tourism to attract foreign tourists. In India, Goa is mot preferred destination for its natural bounty, stunning diversity of riverine systems, lush Green Island, long beaches and some of the oldest heritage sights attract the tourists. The locals of Goa are some of the coolest hosts ever. Warm, friendly, helping, the locals here make you feel as safe as you are at home. There are several tour companies, hotels and travel enterprises promoting their brand in the name of eco-friendly and sustainable tourism. Goa is working hard to implement and to bring a positive social, economic and environmental change.

When tourists create positive impact to the environment, to the local economy and the society the tourism becomes sustainable. Tourism involves primary transportation to the general location, local transportation, accommodations, entertainment, recreation, nourishment and shopping. It is related to travel for leisure, business and what is called VFR (visiting friends and relatives). People now broadly agree that tourism development should be sustainable; however, the question of how to achieve this remains unanswered because of different views and too many debates going on at various levels.

Without travel there is no tourism, so the concept of sustainable tourism is tightly linked to a concept of sustainable mobility. Two relevant considerations are tourism’s reliance on fossil fuels and tourism’s effect on climate change. 72 percent of tourism’s CO2 emissions come from transportation, 24 percent from accommodations, and 4 percent from local activities. Aviation accounts for 55% of that transportation CO2 emissions (or 40% of tourism’s total). However, when considering the impact of all greenhouse gas emissions from tourism and that aviation emissions are made at high altitude where their effect on climate is amplified, aviation alone accounts for 75% of tourism’s climate impact.

The natural curiosity of human to know different places, its culture, and desire of travel is inborn. People keep travelling for number of reasons. The travelling activities will never stop; therefore tourism activities will increase in the future more and more, especially with the development of transportation’s system and the information technology.

There are dos and don’ts when it comes to sustainable tourism.  Global economists forecast continuing international tourism growth, the amount depending on the location. As one of the world’s largest and fastest growing industries, this continuous growth places great stress on remaining biologically diverse habitats and indigenous cultures, which are often used to support mass tourism. Tourists who promote sustainable tourism are sensitive to these dangers and seek to protect tourist destinations, and to protect tourism as an industry. Sustainable tourists can support the impact of tourism in many ways: informing themselves of the culture, politics and economy of the communities visited anticipating and respecting local cultures, expectations and assumptions supporting the integrity of local cultures by favoring businesses which conserve cultural heritage and traditional values. Tourists support local economies by purchasing local goods, by conserving resources, by becoming environmentally conscious, and by using the least possible amount of non-renewable resources such as plastic.

Another concept which is becoming famous is ‘Responsible tourism’ which implies that tourism can be consumed in a more responsible way. Sustainable and Responsible Tourism are both alternative forms of tourism that aim to alleviate the negative effects of tourism, but the terms aren’t identical. Rather than mistaking both to be the same, both Sustainable and Responsible tourism as two parallel concepts similar in their mission, but, different in their implementation. Both ideas ultimately aim to enrich a destination; sustainable tourism approaches this through the influence of stakeholders and political leadership, whereas, responsible tourism takes place at individual level. Responsible Tourism happens when tourists, tour operators, hoteliers, governments and importantly local people take responsibility for nurturing the tourist destinations they belong to.

Increasingly, the local communities and tourism operations are endorsing and following responsible tourism as a pathway towards sustainable tourism. Responsible tourism and sustainable tourism have an identical goal, that of sustainable development. The pillars of responsible tourism are therefore the same as those of sustainable tourism.

The best example of sustainable tourism is the tiny nation Bhutan. It has very strict entry requirements. Travelers are approved to enter Bhutan with an approved tour operator who will arrange all travel while in the country and arrive via Druk Air, which offers a limited number of flights from a handful of cities in Asia. Additionally, all visitors must pay a daily tariff, starting at $200 per day during the low season. However, the daily tariff involves most necessary expenses during a trip, including a 3 star hotel, all meals, a licensed Bhutanese tour guide, internal transportation, and equipment for treks. $65 from this daily tariff is considered “sustainable tourism” royalty which is used towards the country’s free health-care and education, as well as the building of tourism infrastructure. As a result of the high daily tariff, fewer travelers are visiting Bhutan.

I wish to give another example of Gijón, which is a large coastal city in northern Spain. It’s known for its maritime heritage and the old fishermen’s quarter of Cimadevilla.  It is certified for its responsible tourism by the Responsible Tourism Institute (ITR) and supported by UNESCO, the city of Gijon remains as one of the best sustainable tourism examples. After renewing their certificate of sustainability, the government and citizens didn’t stop, instead developed a marketing plan to publicize the city’s commitment to responsible tourism, Gijon continues to champion the example of a city committed to responsible tourism. It offers sustainability both to visitors and to their own citizens in terms of a broad culture and cuisine that blend with its green landscapes, a comprehensive care of the environment, a high quality of life and a tourism model that focuses on the satisfaction of its visitors.

Stakeholders of sustainable tourism play a role in continuing wellbeing of the ecology and economy both. Stakeholders include organizations as well as individuals. A stakeholder in the tourism industry is deemed to be anyone who is impacted on by development positively or negatively, and as a result it reduces potential conflict between the tourists and host community by involving the latter in shaping the way in which tourism develops. The stakeholders in tourism industry are the Governments, NGOs, the tour operators, the tourists and most importantly the local communities.

Local communities play an important role in tourism development. They are regarded as legitimate and moral stakeholders in tourism development. Local community has to be involved in policy and decision making so that it will enhance the trust and confidence of the local people on the tourism industry. I am of an opinion that good amount of research is required to study this facet in tourism development. I feel that tourists must respect the local culture, minimize waste, buy local products to help the economy grow, and lower the carbon emission in air. Walk or use the local transpiration as far as possible.

Being a responsible traveler comes naturally to some, while many remain ignorant travelers. If you see someone inadvertently doing something that is damaging to the environment or to the local people and culture, it’s better to caution the person/group in a friendly manner. Become a responsible traveler and help spread the word about sustainable tourism.

Bhutan is one of the smallest countries in the world, but it stands first when it comes to conservation. It is often ignored by the international community because of its tiny size. This small nation lies deep within the Himalayas between China and India, two of the most populated countries in the world. This country’s population is of about 750,000 only, but the people have set some remarkable environmental benchmarks.  Bhutan is not only carbon neutral, it is also a carbon basin which makes it one of the few countries in the world to have negative carbon emissions.

During the run-up and first week of the Paris climate talks in November 2015, the biggest greenhouse gas emitters China, United States, European Union, India and Russia were in the center stage. They account for more than half  of all global emissions, their carbon commitments need to be closely scrutinized for the cause of wellness of this planet. About 150 countries submitted climate pledges to the United Nations. But, the most interesting nations are countries that are already carbon negative. These national carbon sinks are not pioneer in green energy, nor are their citizens rigorously focused on their ecological footprints. They respect the environment as much as their own lives; they lead lives that are different from most peoples around the world. They treat this planet differently. They nurture it, they respect it. The leading nations in the world could certainly emulate a thing or two from these small nations.

The Himalayan nation, Bhutan emitted just 2.2 million tons of carbon dioxide in 2013 (the last time an inventory was taken). Bhutan is, undeniably, a small country, but that does not mean that their carbon frugality can be undervalued. Luxembourg is also a small nation having small population, it emits more than 10 million tons of CO₂ per year.

What makes Bhutan an outstanding example? The majority of Bhutanese work in agriculture and forestry. They prefer living closer to the land. The country relies on hydropower which is by no means a perfect energy source, but at least it does not threaten the future of the nation. This is one of the major factors for their low carbon emission. Bhutan’s hydropower production is so prolific that it exports a significant portion to its neighbor India which is energy hungry. Conservation of the environment is one of the four pillars of Bhutan’s ‘Gross National Happiness’ philosophy. GNP is contrast to GDP. As mandated in its constitution, Bhutan all time preserves 60 percent of its land under forest cover. Bhutan has succeeded in doing this so far. This country is home to the highest percentage, more than 51 percent of protected land in Asia. And, most of it is unharmed forests interwoven with free-flowing rivers!

The country’s vast, largely undisturbed forests absorb far more carbon dioxide than its people produce, yes, they absorb carbon dioxide emitted by the neighboring countries. Occupying more than eight million acres, Bhutan’s trees could possibly absorb more than six million tons of carbon dioxide. Though, this could be a rough approximation, it is difficult to calculate  with precision the CO₂ absorption rate for a forest. The fact remains that Bhutan’s jungles absorb the many neighboring country’s carbon dioxide emissions.

It is not that everything is hunky-dory in Bhutan. Like every country has its plus and minus, this country too has its share. The Government of Bhutan has been a constitutional monarchy since July 2008. Its monarchy has made some big mistakes on human rights, like amending its citizenship laws and leaving 100,000 Bhutanese people of Nepalese origin stateless. It also ranks in the bottom quartile of countries by GDP per capita. But by and large, Bhutanese don’t seem to think they are suffering. People are not money ambitious. The country assesses its progress not by gross national product but by “Gross National Happiness”. The terminology is printed on the cover of a self-help leaflet, which means it is not a crazy idea. The government takes data on measures such as health, education, and ecological diversity and flexibility and combines the statistics to measure the country’s overall well-being. This approach has produced dividends for Bhutan’s environment. It’s in stark contrast to other nations that have constitutional provisions protecting gun ownership but not the planet. Bhutan has also committed to leaving 60 percent of its land forested and has banned logging exports.

Evidence of this commitment to conservation is everywhere in Bhutan. Native wildlife which includes endangered royal Bengal tigers, elusive snow leopards, elegant black cranes and elephants all roam freely in the country’s 5 million acre network of protected areas. The motto of people of this Buddhist kingdom holds on to a fundamental birthright of living out life in a healthy environment. And the rest of the world benefits, too. Bhutan is in a region that provides water for one-fifth of the world’s population. Bhutan also is at the heart of the Eastern Himalayas, which is one of the world’s 10-most biodiverse regions.

Lessons to learn from Bhutan

In the words of Mr. Dechen Dorji Bhutan’s representative to World Wildlife Fund (WWF) “We need to balance the need for economic development – like hydropower and tourism – with the need to protect natural resources.  We need to balance jobs in the cities with jobs in rural villages. And we need to balance tradition and age-old religious beliefs with the desires for modern amenities.”

The World Bank is all praises for Bhutan’s guiding development philosophy – gross national happiness (GNH). The top officials of World Bank say that it is high time that other countries should emulate Bhutan’s practices of balancing growth and sustainable development. They say that Bhutan can play a critical role in showing the world how to respond to climate change. The way this country is using its forestry is amazing. In fact it is creating opportunities in the private sector for new businesses connected with environment conservation.

“The government can’t absorb people coming out of universities and high schools. It has got to be the private sector and you’ve got to create the opportunity through removing regulations. That makes it easy for people to set up businesses,” World Bank official says.

Can Bhutan disallow industrialization? 

There is a worry, can Bhutan take mores stricture measures to disallow industrialization? Its natural resources are on the brink of being more threatened now than ever before, despite the governments political will and conservation milestones. The country has changed more in the last 50 years than the past 500 years combined. Rapid modernization, the adoption of democracy, and a dramatic shift in demographics have all contributed to in the country’s transition. Today, 60 percent of the country’s population is below the age of 34. As new industries are created for growth, somewhere the environment seems to be taking a backseat. If the country does not address the challenges now, it risks losing everything it has worked so hard to protect. Rest of the world needs to emulate this country’s model; I wish the Government of Bhutan sticks to its “gross national happiness” philosophy.

Bhutan as a nation has always preserved its isolation from rest of the world.  This 39,000 square meter nation with approximately 7,00,000 population cozily exists between Asia’s two giants – India and China. Bhutan not only withstood numerous attempts to be conquered by the Tibetans and Mongols, but also managed to evade colonization and the resultant incorporation into the British Raj, despite two wars against the British. Under the Treaty of Punakha in 1910, Britain guaranteed Bhutan’s independence, and approved Bhutanese Royal Government an increased stipend. The Treaty allowed control of Bhutanese Foreign Relations and defense to Britain. Bhutan has always stayed out of international organizations and has maintained few bilateral trades.

Bhutan was one of the first nations to recognize India’s independence in 1947 and both nations have fostered close relations. The tie between these two countries is augmented further during 1950’s annexation of Tibet by People’s Republic of China and its border dispute with both India and Bhutan. India strengthened its ties with both Nepal and Bhutan as its “Himalayan Frontier” security policy. India shares 605 kilometers (376 mi) border with Bhutan and is its largest trading partner. Bhutan’s smooth transition from political monarchy to a successful democracy is commendable. The credit of course goes to Bhutan’s royal family for ushering in democracy.

After the 1960 government ban on trade with Tibet, Bhutan’s external sector became almost totally oriented toward trade with India. With the completion in 2002 of the second hydroelectric power project financed by India—built largely with Indian migrant labor and designed to deliver the majority of its power outputs to India—India’s dominance in terms of exports has remained over 90%. Import sources, however, have become increasingly diversified.

On his first ever visit to Bhutan for 2 days on 16^th June 2014; Indian Prime Minister Narendra Modi assured cooperation between the two countries related to their mutual security. Both Prime Ministers agreed to continue with their close coordination and cooperation with each other on issues relating to their national interests, and not allowing each other’s territory to be used for interests unfavorable to each other. This was PM’s first foreign trip after assuming office. I think his quick decision making ability and his no nonsense approach in taking executive decisions and assuring quick implementation of policies need salutation from all of us. Security and defense are priority of his governance.

The main objective of the visit was to flush out Northeastern insurgents from the Bhutanese territory. On the eve of Modi’s visit, Bhutan’s PM said this was a chance to celebrate the ties between the two countries and added, “We have to further strengthen this friendship.” Bhutan’s PM Tobgay assured that his county was very serious against terror camps. The nation has dismantled all terrorist outfits or camps. Since then none have entered Bhutan. The Bhutanese PM assured that his territory will never be used in any way against security interests of India. Prime Minister Narendra Modi emphasized having a good neighbor is important for a country’s happiness and in its absence a nation cannot live in peace despite prosperity. He made the remarks while reminding Bhutan that one of the factors responsible for its happiness was having a good neighbor like India!!