Transcript Alternatieve Welvaartsindicatoren

Degrowth
18/04/2008
A Simplified Index of Sustainable
Economic Welfare (SISEW) for France
1980-2006
Brent Bleys
| pag. 1
The ISEW Story
• ISEW
– measure that tries to capture the overall impact
of economic activity on human well-being
– developed by Herman Daly and John Cobb
– more recently: GPI and MDP
• implementations in a growing number of
countries
• result: optimal physical scale of the
economy has been surpassed
A Simplified ISEW
26/06/2007 | pag. 2
Optimal Physical Scale
(Lawn)
Threshold Hypothesis (Max-Neef):
“for every society there seems to be a period in which economic
growth seems to bring about an improvement in the quality-of-life, but
only up to a point - the threshold point - beyond which, if there is more
economic growth, quality-of-life may begin to deteriorate.”
A Simplified ISEW
26/06/2007 | pag. 3
The ISEW for the UK
(Jackson et al.)
A Simplified ISEW
26/06/2007 | pag. 4
The ISEW for Belgium
A Simplified ISEW
26/06/2007 | pag. 5
A Simplified ISEW
Item Selection
• rationale for a SISEW:
– large amount of data needed
– inconsistent set of items and valuation
methods
– e.g. noise pollution
• proposal: omit from the ISEW those items
that have low quantitative significances
when compared to most other items
(based on original case study) ->
Simplified ISEW
A Simplified ISEW
26/06/2007 | pag. 6
A Simplified ISEW
Methodology
ITEMS
A Simplified ISEW
26/06/2007 | pag. 7
Personal Consumption Expenditures
+
1.35
Losses from Income Inequality
-
0.16
Value of Household Work
+
0.59
Public Expenditures Health & Education
+
0.15
Costs of Commuting
-
0.05
Costs of Air Pollution
-
0.07
Natural Capital Depletion
-
0.47
Costs of Climate Change
-
0.28
Costs of Ozone Layer Depletion
-
0.11
Net Capital Growth
+/-
0.09
Change in NIIP
+/-
0.08
A Simplified ISEW
Belgium
A Simplified ISEW
26/06/2007 | pag. 8
A Simplified ISEW
Conclusions
• easier compilation, without affecting the outcome
of the exercise (except for changes in absolute
terms)
• highlights the items that most urgently need an
internationally agreed upon methodology
• manual -> possibility of calculating
SISEW/capita for a large group of countries
using a standardized set of valuation methods
• important to keep in mind that the eventual
omission of any items is based on historical
observations + differences between countries
A Simplified ISEW
26/06/2007 | pag. 9
SISEW for France
General
• Compilation of a Simplified ISEW for
France, 1980-2006
• data obtained from
– INSEE, IMF, WIDER’s WIID
– WRI, UNEP’s Geo Data Portal
• 11 items, methodology taken over from
Jackson et al.’s ISEW study on the UK
(1997)
A Simplified ISEW
26/06/2007 | pag. 10
SISEW for France
Per capita GDP vs SISEW
30000.0
25000.0
2000€/capita
20000.0
15000.0
10000.0
5000.0
A Simplified ISEW
26/06/2007 | pag. 11
per capita
SISEW
06
05
20
04
20
03
20
02
20
01
20
00
20
99
20
98
19
97
19
96
19
95
19
94
19
93
per capita GDP
19
92
19
91
19
90
19
89
19
88
19
87
19
86
19
85
19
84
19
83
19
82
19
81
19
19
19
80
0.0
SISEW France
Positive Items
1000000.0
800000.0
million 2000€
600000.0
400000.0
200000.0
-200000.0
Private Consumption Expenditures
Non-defensive Public Expenditures
Changes in Net International Investment Position
A Simplified ISEW
26/06/2007 | pag. 12
Services from Household Labour
Net Capital Growth
06
05
20
04
20
03
20
02
20
01
20
00
20
99
20
98
19
97
19
96
19
95
19
94
19
93
19
92
19
91
19
90
19
89
19
88
19
87
19
86
19
85
19
84
19
83
19
82
19
81
19
19
19
80
0.0
SISEW France
Negative Items
350000.0
300000.0
million 2000€
250000.0
200000.0
150000.0
100000.0
50000.0
Welfare Losses caused by Income Inequality
Costs of Air Pollution
Long-Term Environmental Damage
A Simplified ISEW
26/06/2007 | pag. 13
06
05
20
04
20
03
Costs of Commuting
Depletion of Non-Renewable Resources
Ozone Layer Depletion
20
02
20
01
20
00
20
99
20
98
19
97
19
96
19
95
19
94
19
93
19
92
19
91
19
90
19
19
89
19
88
87
19
86
19
85
19
84
19
83
19
82
19
81
19
19
19
80
0.0
Alternative Measures of
Well-Being
• increasing interest in alternative measures
of well-being:
– OECD’s World Forum on Statistics,
Knowledge and Policy
– EU’s ‘Beyond GDP’ conference
– Globescan survey reveals a worldwide
support for alternative measures
• large number of possible alternatives, the
ISEW and GPI being one of them
A Simplified ISEW
26/06/2007 | pag. 14
ISEW and Policy
• ISEW has some potential for policy-making:
– more comprehensive approach than traditional
economic accounting
– captures the trade-off between these dimensions
– possible first step towards a different set of economic
accounts
• However, a country should never be guided by
one single index (neither GDP, nor ISEW) ->
different types of indicators are needed
A Simplified ISEW
26/06/2007 | pag. 15
ISEW and Policy (2)
• the ISEW should be seen as a measure of
economic welfare: the value added by the
economic system to natural capital
• sustainability is not captured at all by the
ISEW, supplemental accounts are needed
to account for this
• need for the development of a
standardized and widely supported
methodology (crucial)
A Simplified ISEW
26/06/2007 | pag. 16
ISEW and Policy (3)
• great potential as a communication tool
(empirical translation of the criticism on
GDP)
• often put forward in such a way
• = contribution to the degrowth debate
Thank you!
Questions?
A Simplified ISEW
26/06/2007 | pag. 17