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From there go to "Island Conditions" and look at both "Polution" and "Beauty.."
From there you should be able to see how much garbage collection you need, and how much beautification you need.
I'm pretty sure the over all happiness goes by what people actually see... so you wan to try to keep people in the nice party of the island and the more obscure area don't matter much if not many people go near there.
Oh... "predicted polution" is a overlay too. Almost makes the game too easy. When you drop a garbage dump, or new factory, or whatever, it'll immediately show you it's eventual effect. If you get it so it looks good, just run the game a while and the actual conditions should match that before too long.
Turn on the Overlay for "Predicted Polution" and try to put on in the middle on anything that is going red or similar.
The dump is ugly is hurts "beauty", but the polution is more important to clean up.
Ideally though, like I said before, people care about beauty if they see it, so a dump not on the road, but in the middle of industry/polution is best.
As far as the "bunny", you're taking the news cast too seriously. A lot of it is just silly or even sarcastic. For example, if you don't connect driveways to roads, Sunny thanks for you helping the Island "Go Green", but a real suggestion can pop up to "Make Sunny Unhappy by connecting the Driveway." (paraphrasing from memory.)
They also wants you to get rid or logging and mining, and other stuff. But the idea of Tropico 4 is to balence stuff. You can't ruin your economy just because some (in-game) enviromentalists want you to.
Actually, I think you accepted an optional mission. The best thing to do would probably be to have not accepted it in the first place. You can ignore it, EXCEPT it'll keep eating up a slot in the small number of outstanding missions you can have..
Seriously, I've considered restoring a backup from before when I took such a mission. But otherwise, you just do whatever you have to do to fix it, and then put your economy back into shape afterward, even if it means trashing the enviromental respect in the process. You need to find a good balence that works for you, and the game is designed so you can pick and choose what that is.
BTW... I've often tried to fix enviromental happiness simply by shooting anyone not happy with the enviroment or anything else; that's the ONLY strategy that I've tried repeated that NEVER seems to work - people get p.o'ed about their dead friends, you kill them too, and it ultimately ends with you getting overthrown.
Environmental happiness is based on beauty around where tropicans live and work. Every island has a base beauty map. Beauty is decreased by pollution, and increased by parks.
Garbage dumps / water treatment plants reduce pollution around them.
Aside from parks, some buildings also increase beauty as well. Upgraded palace, and diamond cathedral for example.