Beyond GDP: Measuring Welfare and Assessing Sustainability by Marc Fleurbaey

By Marc Fleurbaey

Despite recurrent feedback and a magnificent construction of other signs by means of students and NGOs, GDP is still the relevant indicator of nations' good fortune. This booklet revisits the rules of symptoms of social welfare, and significantly examines the 4 major possible choices to GDP which were proposed: composite symptoms, subjective health and wellbeing indexes, features (the underlying philosophy of the Human improvement Index), and an identical earning.
Its provocative thesis is that the matter with GDP isn't really that it makes use of a financial metric yet that it makes a speciality of a slim set of features of person lives. it truly is truly attainable to construct another, extra finished, financial indicator that takes source of revenue as its first benchmark and provides or subtracts corrections that characterize the convenience or rate of non-market points of person lives. the sort of degree can admire the values and personal tastes of the folk and provides as a lot weight as they do to the non-market dimensions.
one other provocative thought is that, against this, many of the presently on hand substitute signs, together with subjective wellbeing and fitness indexes, usually are not as respectful of people's values simply because, like GDP, they're too slim and provides particular weights to a number of the dimensions of existence in a extra uniform manner, with out taking account of the range of perspectives on lifestyles within the inhabitants. the preferred appeal that such substitute symptoms derive from being non-monetary is consequently in accordance with equivocation.
additionally, it truly is argued during this e-book that "greening" GDP and relative symptoms isn't the right solution to contain sustainability issues. Sustainability contains predicting attainable destiny paths, for that reason assorted symptoms than these assessing the present state of affairs. whereas a variety of signs were renowned (adjusted internet reductions, ecological footprint), none of them consists of the mandatory forecasting attempt right review of attainable futures calls for.

Show description

Read Online or Download Beyond GDP: Measuring Welfare and Assessing Sustainability PDF

Best economic theory books

Art of Smooth Pasting (Fundamentals of Pure and Applied Economics)

The most mathematical rules are awarded in a context with which economists may be general. utilizing a binomial approximation to Brownian movement, the math is diminished to uncomplicated algebra, progressing to a few both easy limits. the start line of the calculus of Brownian movement — ''Itô's Lemma'' — emerges by way of analogy with the economics of risk-aversion.

Dynamic Asset Allocation with Forwards and Futures

This can be a complicated textual content at the idea of ahead and futures markets which goals at offering readers with a entire wisdom of ways costs are confirmed and evolve through the years, what optimum concepts possible anticipate from the members, what characterizes such markets and what significant theoretical and functional transformations distinguish futures from ahead contracts.

Enterprise and Inclusion in Italy

In firm and Inclusion in Italy, Edmund Phelps weaves jointly and applies to Italy his important pursuits of the prior decade -the valuable of restoring initiative, company and dynamism in an exceptional many industrialized economies, such a lot acutely wanted within the jap ecu economies amid the wreckage in their experiments with industry socialism and communism, and the important of extending self-support and involvement within the enterprise area to the big variety of marginalized employees, the place his concentration used to be at the excessive premiums of dependency, idleness and crime between much less informed within the usa.

Economics of Physiocracy

The delivery of Physiocracy was once the beginning of the technology of economics within the huge basic shape during which it truly is recognized to us this present day. it's extraordinary consequently that the Physiocrats must have bought so little consciousness from economists within the English-speaking global. This ebook fills that hole. the quantity starts off with a intentionally non-specialist advent.

Additional resources for Beyond GDP: Measuring Welfare and Assessing Sustainability

Sample text

In fact, at the end of the day, it is essentially this factor that explains the explosion of the footprint over the last decades, other components of the index being, by contrast, surprisingly flat. This suggests isolating this important factor and then looking for better ways of capturing imbalances along the other dimensions. Indeed, over the last years, the concept of carbon footprint has started taking precedence over the initial EF indicator (Wiedmann and Minx 2008), and footprint-like approaches have started being developed for some other items not initially covered by the EF, such as the water footprint (Hoekstra 2009).

First, this chapter can be viewed at best as an introduction to the sustainability literature, which is huge and often very technical. We did not attempt to be fully comprehensive in our assessment of this literature. The reader interested in further details will strongly benefit from much more comprehensive surveys, such as Pezzey and Toman (2003),1 Heal and Kriström (2005), and Asheim (2007). Second, the issue of sustainability is often assimilated to the question of “greening” macroeconomic indicators.

Technical progress can help sustain growth or well-being even when the global capital stock is declining. Concerning population change, the practice is to consider that sustainability requires maintaining inclusive wealth per capita, meaning that a positive population growth rate must be compensated for by larger savings (Arrow, Dasgupta, and Mäler 2003b). Much more will be provided in chapter 2 concerning the analytical foundations and the limits of this indicator. , Dietz and Neumayer 2004). The main criticisms can be gathered under three headings.

Download PDF sample

Rated 4.63 of 5 – based on 8 votes