2026/07/29 by Muhammad Ramzan, Ummara Razi, Mohammad Subhan +1
Economics, Econometrics and Finance · Environmental Science · Social Sciences · #Energy, Environment, Economic Growth #Income, Poverty, and Inequality #Sustainability and Climate Change Governance
paper · doi:10.1002/sd.71505
openalex publication_date 2026/07/29 · openalex created_date 2026/07/31 · openalex updated_date 2026/07/31
ABSTRACT Quality of life (QOL) reflects the combined state of economic conditions, environmental quality, and social well‐being. Its assessment is especially important in developing economies because it reveals how effectively social and economic policies translate into improved living conditions and supports progress toward SDG 3 on good health and well‐being. Understanding the drivers of QOL is therefore essential for designing more effective welfare‐enhancing policies. Against this background, this study examines the effects of economic freedom (ECF), environmental deterioration (END), energy poverty (ENP), institutional quality (ISQ), inflation (INF), and economic growth (EG) on QOL in Pakistan using quarterly data from 2000Q1 to 2022Q4. To capture heterogeneous effects across time horizons and conditional distributions, the study applies multivariate wavelet quantile regression. The findings show that END and ENP generally reduce QOL, with the strongest adverse effects concentrated among the most vulnerable groups and, in some cases, at the upper tail of the distribution. ISQ improves QOL mainly at the lower quantiles in the short and medium term, although this positive influence weakens over time. ECF exhibits mixed effects, generating temporary gains for middle‐quantile groups but broader welfare losses in the long run. INF appears manageable for some groups in the short term, yet persistent INF ultimately harms QOL across the entire distribution. In contrast, EG emerges as the most consistently beneficial factor, with its positive effect becoming broader and stronger over time. The results highlight the need for targeted and distribution‐sensitive policies to improve QOL in Pakistan and advance progress toward SDG 3.