The UK has ranked poorly when it comes to providing people with long and happy lives, according to research released.
The European Happy Planet Index of 30 countries lists the UK at 21 for its ecological efficiency at delivering wellbeing.
The New Economics Foundation (Nef), which compiled the list, also found that Europe was less ecologically efficient now than it was 40 years ago.
The index measures the carbon footprint of each country alongside life-satisfaction and life expectancy to calculate how efficiently finite resources are converted into wellbeing.
The report, published in association with Friends of the Earth, found that only transition economies and Portugal, Greece and Luxembourg ranked below the UK.
Europe as a whole has become less efficient in translating fossil fuel into relatively long and happy lives, it said. In fact, the index reveals that Europe is less carbon efficient now than it was in 1961.
People are just as likely to lead satisfied lives whether their levels of consumption are very low or high, according to the report.
Nic Marks, founder of Nef's Centre for Wellbeing, said: "Countries like Iceland, the highest-scoring nation on our index, clearly show that happiness doesn't have to cost the Earth.
"Iceland's combination of strong social policies and extensive use of renewable energy demonstrate that living within our environmental means doesn't mean sacrificing human wellbeing. In fact, it could even make us happier.
"By learning from the differences between European countries and by copying the best practices, we believe it will be possible to both greatly reduce our carbon footprint, and increase our wellbeing."
