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1. if you're trying to defeat the elite 4 again, then the unknown dungeon
2. if it's your first time, beat every trainer and some pokrmon in victory road, every trainer you haven't beaten, then the grasslands and water outside the plateau.
in general, just the victory road or unknown dungeon. or if your training electric types, maybe Seafoam Islands, Water types in the Pokemon Mansion(though I suggest victory roads because of the rock types), and similarly for rock/grass types in the Power Plant
Why don't you just fight the elite four directly :cheeky: . Even though you'll lose you can still get exp as long as you have defeated a pokemon. Elite four is the best place to train either way. Just don't use potions and make sure you've spent all your money before you enter (so you don't lose profit ).
It doesn't matter about happyness cause thats not important in the GB pokemon red. Also if you win the first person you'll get money! Lose on the next person you'll still walk away with some cash in your hands (buy more potions for when your really ready to fight them).