Uwasu17happy

ReviewAreviewoflimitationsofGDPandalternativeindicestomonitorhumanwellbeingandtomanageeco-systemfunctionalityB.
F.
Giannettia,F.
Agostinhoa,C.
M.
V.
B.
Almeidaa,*,D.
HuisinghbaUniversidadePaulista(UNIP),ProgramadePos-gradua~aoemEngenhariadeProdu~ao,LaboratoriodeProdu~aoeMeioAmbiente,S~aoPaulo,BrazilbInstituteforaSecureandSustainableEnvironmentUniversityofTennessee,Knoxville,TN,USAarticleinfoArticlehistory:Received10June2014Receivedinrevisedform5September2014Accepted16October2014Availableonline29October2014Keywords:Indicators/indexesofprogressHumanwell-beingCarryingcapacitySustainabledevelopmentabstractThemisuseofGrossDomesticProductasameasureofpublicwellbeingresultsfromtheideathateconomicgrowthisalwayssynonymouswithenhancedqualityoflife,disregardingthefactthattheeconomyprotsfromnatural,social,andhumancapital.
Inordertomonitorprogresstowardssus-tainabilityandincreasedwell-being,governmentsworkingcloselywithscientistsdevelopednewmetricsthatgofurtherthanincomeandmaterialwealth.
ThereareseveralcandidatesforrevisionsoftheGrossDomesticProduct.
Basedonacomprehensiveliteraturereview,thispaperidentiedseveralpossibleindicatorsthatintendtoadjust,supplementorsubstituteforGrossDomesticProduct.
Twomainapproacheswereidentied.
TherstusesGrossDomesticProductasfoundationtobuildacompleteindexandincludesproposalstogreeningGrossDomesticProduct,socializingtheindicesandincludingitinamorecomprehensiveindex.
Thesecondapproachrelatestoeffortstoredenetheindicators,withtheuseofenvironmentallyorientedindicatorsandsociallyorientedmeasures.
Challengestomeasuredevelopment,welfare,andwellbeingarediscussedtoprovideawide-angleviewofeffortstodevelopmeasuresofsocial-economic-ecologicalstatusandprogressbeyondthecurrentverynarrowGrossDo-mesticProduct.
Itwasrecognizedanurgentneedforguidanceforthedevelopmentofgovernancere-gimesdesignedtochangefromshort-termdecision-makingprocessestothose,whichsupportthemulti-decadeplanningandimplementationprocessesthatareneededtoguidethetransitiontopostfossilcarbonsocieties.
Thiscomprehensivereviewcoversawiderangeoftopics,fromproblemsofGDPtochallengesandthoughtsaboutindicators.
Thereviewshowsthatifmankindisconcernedwiththesustainabledevelopmentoftheplanetasawhole,thenprogressindicatorsmeasuredonlyinmonetaryorsocialtermsarelimitedandrestrictedtotheweakorthemediumsustainabilitymodel,andmustbecomplementedbybiophysicalindicators.
Itistimetochangetheglobalknowledgeofwhatprogressreallyis,changingthediscussionfromgrowthtosustainabledevelopmentandhumanwell-being.
2014ElsevierLtd.
Allrightsreserved.
1.
IntroductionMeasuresofprogresscanprovideafundamentalconnectionbetweentheeconomyandnations'policymakingestablishment.
ThecurrentdefaultstandardforeconomicandsocialprogressisGrossDomesticProduct(GDP),whichisthemostextensivelyestablishedmeasureofanation'seconomicperformance(MarcussandKane,2007;McCullaandSmith,2007).
Whereasitssimplicitymakesitsuseeasy,thereisanincreasingacknowledgmentthatitisnotadequatetofulllthetaskofmonitoringalloftherelevantfeaturesformodernsocieties,governance,eco-system,exo-sys-tems,policymakersandpublic.
GDPassessessupplyanddemandthroughtheaccountofthemarketvalueofgoodsandservicesproducedandtradedinacountryduringagivenyear.
Thisindexresultsfromthesimpleadditionofacountry'sindividualcon-sumptionexpenditures(households'paymentsforgoodsandser-vices),governmentalexpenses(publicexpensesonthesupplyofgoodsandservices,nationaldebts,etc.
),netexports(exportsminusthevalueofimports),andnetcapitalproduction(anincreaseinthenation'sentirestockofcapitalgoods).
Reportingonthegoodsandservicesproducedinthecountryeitherbydomesticorforeigncompanies,theGDPisdesignedtoanswerhowaneconomygrows,whichfractionofproductiongainsisduetoinationarytrends,andhowmuchofthegrossincomeproducedisusedforconsumption,investmentorsavings(McCullaandSmith,2007).
*Correspondingauthor.
UniversidadePaulista(UNIP),ProgramadePos-gradu-a~aoemEngenhariadeProdu~ao,LaboratoriodeProdu~aoeMeioAmbiente,R.
Dr.
Bacelar1212,04026002S~aoPaulo,Brazil.
Tel.
:551155864127.
E-mailaddress:cmvbag@unip.
br(C.
M.
V.
B.
Almeida).
ContentslistsavailableatScienceDirectJournalofCleanerProductionjournalhomepage:www.
elsevier.
com/locate/jcleprohttp://dx.
doi.
org/10.
1016/j.
jclepro.
2014.
10.
0510959-6526/2014ElsevierLtd.
Allrightsreserved.
JournalofCleanerProduction87(2015)11e25SinceGDPlimitscoincidewiththelimitsusedtomeasurethepopulationandemploymentofacountry,thisindexisbeingusedforestablishingnationalpoliciesanddevelopingprograms,and,unfortunately,toevaluatethequalityoflifeindifferentcountries.
GovernmentsregularlyusechangesinGDPasanindicationofthesuccessofeconomicandscalpolicies.
ItisvitaltounderstandthatGDPisnotintrinsicallyharmfulorincorrect,butitmeasuresonlypartialeconomicactivities.
Usingitasanindicatorofoverallwellbeingisambiguousanddangerous.
"GDPisnotwrongassuchbutiswronglyused"(Stiglitzetal.
,2009).
Stiglitz(2009)challengedthe"GDPfetishism"andques-tionedwhethercurrentstatisticsproducesaccurateguidesforpolicyorbusinessdecisions.
Stiglitzalsohighlightsthatstatisticalframeworksintendedtosummarizewhathappensinacomplexsocietyinafewclearlyinterpretablenumbers,suchasGDPweakmeasures,maycontributetothedegradationoflivingpatterns.
Inthebook"MismeasuringOurLives,"Stiglitzetal.
(2010)reviewsthelimitsofGDPasastandardofthewellbeingofsocietiesetakingintoaccount,forexample,howGDPignoreseconomicinequalityanddoesnotintegrateenvironmentalservicesintoeconomicde-cisions.
AlistofthemajorproblemsofGDPasaproxytosustainablesocietaldevelopmentincludes:Itignoresseveralcomponentsthatdonotinvolvemonetarytransactions(Kubiszewskietal.
,2013),excludingalmostallnon-monetaryproduction,suchaschildcareorvolunteerism,andtheworkdoneathome.
DespitenonmarketproductionispartiallyintegratedinGDP,suchasgovernment'sdefense,emergencyhousingandhealthcareexpenditures,manyeco-nomicactivitiesareexcludedfromitsmeasures,suchasdona-tions,familyunit'sproductionofservices,aswellasmanyofthedeterminantsofwellbeingsuchasthevalueofeconomicsecu-rity,socialrelationsandpersonalsafety,health,andlongevity(AnheierandStares,2002;Michaelsonetal.
,2009);Itfailstoassesschangesinhumancapital(bothsocialandorganizational),anddoesnotaccountforthecirculationofin-comeamongindividuals,whichcanenhancepersonalandso-cialwellbeing(WilkinsonandPickett,2009);Itcountseveryexpenditureaspositiveanddoesnotdiscrimi-natewelfare-enhancingactivityfromwelfare-reducingactivity(Cobbetal.
,1995).
Defensiveexpenditures,forexample,involvebothcrime-relatedcosts,suchaspolice,andsecurityandnoncrimerelatedcosts,suchasinsurance.
Theseexpendituresdonotconstituteanetincreaseinprogressbecausetheyonlypreventorrepairsocialandenvironmentalcosts(Leipert,1989);Itignoresdifferentvisionsofthegoalsofdevelopment,suchasculturaldifferences(Henderson,1996,2010),overlookingtheconsequencesofgrowingsocial-economic-political-ecologicalinequities.
BecauseGDPdoesnotaddressbutoftenhidesso-cialandeconomicinequities,itdoesnotproperlyprovideso-cietalinsightsintoeconomicwelfareduetoescalatingcrime,reducingworkerproductivityandinvestment(Bernasek,2006).
Whenthegrowthisconcentratedinonlyoneportionofthesociety,itdoesnotcontributetoimprovingglobaleconomicprosperitybecausethesocialbenetsofincreasesincon-sumptionbythericharelesspositivethanincreasesinspendingbythewholecommunity(Talberthetal.
,2007);Itomitstheenvironment,ignoringenvironmentalcosts,naturalresourcedepletionrates,and,contradictorily;itincludesthecostsofenvironmentalremediationasvaluableproduction.
Moreover,itdisregardslonger-termnegativeconsequencesofshort-termexploitationoftheecosystemandofeco-system'sservices,whichreducethesystem'scapacitytofunctioninamillionways.
ThelistmakesclearthatGDPnotonlyfallsshortinevaluatingcriticalaspectsofqualityoflife,butitalsotriggersandfostersac-tivitiesthatarecontrarytolong-termsocietalwell-being.
AlthoughthereisvalueinusingGDPasoneeconomicindicator,itisclearthatitdoesnotprovideafullandreliableappraisalofacountry'seco-nomichealthforthepresentorthefutureandcertainlydoesnotaddressqualityoflife,happiness,wellnessandothercrucialsoci-etalparameters.
Moreimportant,GDPandmostnationalac-countingsystemsarelimitedbynationalbordersandmostlyignoreunsustainabilitygeneratedbyisolatedactionsineachcountryandtheeffectsofnationaldevelopmentontheoverallbiosphereorindividualcountries.
GDPandwellbeingmaygrowinacountrybyexportingthenegativeaspectsofitsgrowthtoothercountries,attheexpenseofecosystemsandthewellbeingoftheworkersindevelopingcountries(Helmetal.
,2007),withimplicationsforpolicytowardsdevelopingcountriesthatsupplythedevelopedeconomieswithrawmaterials,manufacturedgoodsandservices,someofwhichpreviouslyproducedbythesamedevelopedcountries.
AdistinctconcernaboutGDPasameasureofprogressistheideathat,asGDPincreases,overallqualityoflifewillalsoincrease.
Beyondagivenpoint,incrementsinGDParecounterbalancedbythelossesrelatedwithincreasingincomeinequality,lackofleisureactivities,andnaturalresourceconsumption(Talberthetal.
,2007).
Additionalincreasesineconomicwellbeingmayleadtoadverseresultssuchasthelesseningofthepeople'shealthyrelationships,knowledge,contactwithnature,andmanyotherdimensionsofindividualwellbeing(McKibben,2007).
AccordingtoMax-Neef(1995),althoughtraditionaleconomicsequatesthedesireforma-terialproductstothesatisfactionofneeds,itcanalsobeachievedviamaterialandnonmaterialissuessuchasaccesstoeducation,culturaleventsandhealthycommunityrelationships.
ClaimingthatGDPisacknowledgedtobeapoormeasureofsocialwell-being,England(1998)criticallysurveyanumberofquantitativemea-sures,whichhavebeenproposedascomplementsorsubstitutesforGDP.
Englandclassiesthealternativesascombinationsoftheneedto(i)understandthedifferencebetweenintermediateandgrossnaloutputs,(ii)accountforassetdepreciationinabroadermanner;(iii)separatenetnaloutputbetweenconsumptionandcapitalaccumulation;and(iv)takeaccountofthewelfareimpli-cationsofvariousformsofsocialinequality.
GDPmisusealsoac-celeratestheuseofnaturalresourcesdamagingecosystemsanddecreasingtheecosystems'services(Costanzaetal.
,1998).
Theseservicesonlyprovidedbyahealthyecosystemincludebiodiversitymaintenance,sequestrationofcarbondioxide,aircleansingandwaterquantityandqualitymanagement,oodreductionorpre-vention,arenotaccountedbythemarketeconomyandGDP.
Criticismsarenotnew,anditisclearthatthecurrentGDPmustbereplaced,oratleastitsroleneedstobereviewed.
Otherwise,theentiresocietalsystemwillcollapse,undershort-termgreedandothermyopicviewsthatblockthedevelopmentandutilizationofappropriatedecision-supporttoolsthatcanhelpsocieties,in-dustries,anduniversitiestodevelopandimplementmulti-decadeandmulti-generationalplanningprocesses.
Withtheobjectivetoaddresstheseconcernsaboutthelimita-tionsofGDPandtheneedfortools,whichthatcaneffectivelyguideandmonitorthetransitiontotrulysustainable,postefossilcarbonsocieties,thiscomprehensiveliteraturereviewevaluatesthecon-tent,scope,potentialapplicabilityandbenetsofusingalternativesandsupplementstoGDP;andtorevivethedebatebringingupsomeissuesthatarestilllittlediscussed:WhatindicatorsshouldbeusedtoevaluateprogresstowardsSDWhowillselectthoseindicatorsB.
F.
Giannettietal.
/JournalofCleanerProduction87(2015)11e2512TowhomthoseindicatorsareofinterestHowwouldtheybemeasuredWhatcanbedonewithinthepossibilityoftheexistingaccountsThestructureofthispaperisinthefollowing:inSection2al-ternativesandsupplementstoGDParedescribed,andwediscusstheeffortstoestablishanewindicatorinSection3.
Themajorprogress/sustainabilityindicatorswerereviewedanddiscussed,amongthem:GreenGrossDomesticProducts,GenuineSavings(GS),Genuineprogressindicator(GPI),PhysicalqualityoflifeIndex(PQLI),Humandevelopmentindex(HDI),Emergy,Exergy,Grossnationalhappiness(GNH),HappyPlanetIndex,WellbeingIndex(WI),CountryFuturesIndicatorsandCalverteHendersonQualityofLifeindicators,SustainabilityIndex,IndexofSustainableEconomicWelfare.
InSection4,thedifcultiestomeasureprogress,welfareandwellbeingareexamined.
InSection5,asummaryofthefundamentalconceptualrequirementstobuildaprogressindicatordifferentiatingitsabilitytomeasureweak,mediumandstrongsustainabilityispresented,andnally,weprovideconcludingremarks.
2.
ProposedalternativesandsupplementstoGDPAsawaytofullltheshortcomingsofGDPwhileacknowledgingitsvirtues,anincreasingnumberofindividualsandteamshavedevelopedalternativesandsupplementstoGDPtoexploremorecomprehensivemeasuresofsocietalwellbeingandeco-systemhealth.
Twomainapproachesareidentied.
TherstusesGDPasfoundationtobuildacompleteindexandincludesproposalstogreeningGDP,socializingandincludingGDPinmorecomprehen-siveindexes,suchastheSustainableWellbeingIndicatorsandtheHumanDevelopmentIndex(HDI).
Inthesecondapproach,indicesareconstructedindependentlyofGDP,withtheideathatprogressdoesnotdependoneconomicgrowth,butonpersonalwellbeingandenvironmentallimits.
Effortstoredeneprogressmeasure-mentsincludeenvironmentallyandsociallyorientedindicators.
2.
1.
GreeningGDPTodirectGDP'sshortcomingstoindicatetheconditionofsocietyanditssegments,severalpossibleindicesandsetsofindicatorshavebeenproposedassupplementstoGDP.
Ingeneral,mostoftheproposedindicesseektorectify,correctoraddelementstobein-tegratedintothearrayofinputstobeusedincalculatingGDP.
SomeproposalsusethenationalaccountsandGDPasafoundationandthensubsequentlyaddorsubtractquantitiesinanefforttoaddresspartoftheissuesraisedbymanyresearchers(Costanzaetal.
,2009;Stiglitzetal.
,2010).
TheattemptsforgreeningGDPincludeestimatesfordepletionofnaturalresourcesandenvironmentaldegradationintothena-tions'incomeaccountstoachieveasinglenumber.
Repettoetal.
(1989)proposesadepreciationadjustmenttoaccountfordifferentformsofnaturalresourcedepletion.
UsingtheMarketValueApproach,assetsarevaluedbyapplyingtheexistingpricesobservedinthemarketbytheextentofassets/goodsproducedorplacedinstock.
Repettoetal.
(1989)emphasizesthat,especiallyfornationsheavilydependentonnaturalresourceproductionandexports,theomissionofresourceexhaustionfromtheiraccountsresultsinoverstatednumbersforbothnetproductionandcapitalaccumulationanddonotaddressthedepletionofthestocksorthepotentialforregenerationofecologicalresources.
Questioningtheuseofannualchangesinthemarketvalueofreservesofnaturalresources,ElSerafy(1993,1996)introducesthe"usercost"ofnat-uralresourceconsumptionasanamendmenttoGDP.
Theusercostmethoddenestrueincomeastheamountthatwouldbesustainedfortheforeseeablefuturedespitetheactualnitelifetimeoftheassetbysuitablyreinvestingaportionoftheprotsgeneratedtoensurethefutureincome.
Developersoftheusercostmethodologyemphasizethatnationsthatrelyonthenaturalresourcesexploi-tationtoincreasetheirGDPgrowthratesusuallyuseincorrectvaluestomakedecisionsandimplementpublicpolicies.
However,theuseofthismethodmetnoconsensusabouthowtocorrectlyaccountforincomeandhowtoreectchangesintheenviron-mentalstocks.
Somelimitationsofthismethodincludeseveralassumptionssuchasholdingconstantstheprotrates,therateofextractionuntilthenalexhaustionoftheresource;andthedis-countrates.
Othersupplementalaccountsintendtodetermineprogressandwellbeingbyincorporatingsustainableresourceutilizationmea-surementsintonationalincomeaccounting,ratherthanestimatingmonetaryvaluesforenvironmentalissuesandincludingthemdirectlyintheGDP.
SustainableNationalIncome,developedintheNetherlands,comparesnationalincomeestimatedtobesustain-ableforthatofconventionalnationalincomeaccountingpractices,withoutdirectlyincorporatingsocialfactorsinitscalculations(Huetingetal.
,1993).
Thegapbetweenthetworecordsdescribesthecountrydependenceonnaturalresourceusethatexceedssustainableutilization(Gerlaghetal.
,2002).
In1993,asystemoriginatedbytheinputeoutputmethod(Leontief,1970)wasorganizedbasedontheworksofKeuning(1992,1993)anddeBooetal.
(1991,1993).
TheNationalAccount-ingMatrixincludingEnvironmentalAccounts(NAMEA)blendsstandardeconomicaccountswithasystemofenvironmentalandeconomicaccountsinamatrix,producingaframeforreviewingandoutliningeconomicandenvironmentalpolicies.
ContrastingtoGreenGDP,theNAMEA'sindicatorsarerecordedinphysicalunitsavoidingtovaluetheintangiblecostsandtosubtractthemfromGDP.
AnotherstatisticalframeworkistheSystemofEnvironmental-EconomicAccounting(SEEA),acollectionofstatisticsandin-dicatorsforpolicymaking,investigationandresearch(UnitedNations,2014).
TheSEEA2012waspublishedunderthesponsor-shipoftheUnitedNations,theEuropeanCommission,theOrga-nisationforEconomicCo-operationandDevelopment,theWorldBank,theInternationalMonetaryFundandGrouptheFoodandAgricultureOrganizationoftheUnitedNations.
Degradationandotherissuesassociatedwithecosystemsarenotgranted,butthereisadenitedescriptionofthephysicalowstobeconsideredbytheSystemofNationalAccounting:cultivatedbiologicalresourcesandowstocontrolledlandllsites.
TalberthandBohara(2006)developedmodelsofgreenGDPgrowthanalyzingthegapbetweentraditionalandgreenGDP,andexaminingeightcountriesacross30e50yearsusingtheopennessindex.
Thisindexisaneconomicmetriccalculatedastheratioofeachcountry'stotaltrade(importsplusexports)tothecountry'sGDP.
Thehighertheindex,thelargerwillbetheeffectoftradeondomesticactivities.
Theeffectsofeconomicopennessshownega-tivenonlinearrelationshipswithgreenGDPgrowthandapositivenonlinearcorrelationwiththegapgrowthbetweentraditionalandgreenGDP.
TalberthandBohara(2006)concludethatagreenGDPtimeseriescouldbeusefulforre-examiningparametersthatmayaffecttherateofgrowthineconomicwelfare.
Withtheobjectivetogatherandprovideinformationtoover-comethelimitationsofGDP,leadersof189nationssignedtheUnitedNationsMillenniumDeclaration,in2000,layingthebasisforeightinternationalgoalsforunderpinningimprovementintheoverallhumancondition.
Thegoalsconsistofdevelopingaglobalcommunityforprogress,eradicatingextremehungerandpoverty,achievingwidespreadprimaryeducation,promotinggenderequityandempoweringwomen,diminishingchildmortality,improvingB.
F.
Giannettietal.
/JournalofCleanerProduction87(2015)11e2513maternalhealth,combatingillnesses,andassuringenvironmentalsustainability.
Forty-eightindicatorsareofferedtomeasureprog-resstowardssocietalachievementofthesegoals(UNDESA,2007).
TheHandbookofNationalAccounting:IntegratedEnvironmentalandEconomicAccountingpublishedalistoffourcategoriesofaccounts,tobecomplementarytotheSystemofNationalAccounts(UnitedNations,2003).
TheHandbookincludesinformationabouttheuseofenergy/materialsandthegenerationofsolidwasteandpollut-antsattheindustrylevel;themoneyspentbygovernment,in-dustry,andhouseholdstoprotecttheenvironmentortosustainablymanagenaturalresources;thestocksofnaturalre-sources(land,sh,forest,water,andminerals);andhownonmarketitemsarevaluedandadjustedfordegradationandnaturalresourcedepletion.
TheHandbookdoesnotincludesocialcapitalcomponents,althoughothereffortstoproducecomple-mentaryaccountsaredesignedtomonitorcomponentssuchashealth,education,volunteeractivity,andhouseholdproduction.
Thisapproachinproducingcomplementaryaccountsisawaytoprovidefurtherinformation,butavoidsthedifcultyorre-sponsibilityofintegratingsuchinformationintotheexistingSys-temofNationalAccounts.
TheGenuineSavings(GS)showsthelevelofsavingsinacountryafterdepreciationofproducedcapital(WorldBank,1997).
WithinGS,investmentsinhumancapital(education);depletionofmin-erals,energyandforests;anddamagestotheenvironmentaremeasuredbythemarketpriceofglobaldamagesfromcarbonemissions.
Intangiblewealthisassociatedtothesocialandhumancapitalandincludesabilitiesandexpertiseofthelaborforce,legalsystems,propertyrights,andadministration.
GSsubtractsenvi-ronmentaldegradationandresourcereductionandaddsin-vestmentsinhumancapitaltotheGDP.
GSwascalculatedfor120countries,andresultssuggestthatthemainformofwealthisintangiblecapital,humancapitalandthequalityofformalandinformalorganizations.
Thedistributionofproducedassetsintotalprosperityispracticallyconstantamongincomegroupswhiletheshareofnaturalcapitaltendstodecreasewithincomeatthesametimeastheshareofintangiblecapitalincreases.
Theseobservationsareusedtoexplainwhyrichcountriesarerich,consideringtheirpopulations'capabilitiesandthequalityoftheinstitutionsunder-neatheconomicactivity.
However,UwasuandYabar(2011)analyzingcountries'sustainabilityconditionsusingGSreportthatthenatureofinstitutionalandpopulationgrowth,alongwithnaturalresourceabundance,signicantlyinuencescapitalaccu-mulationinthelongtermbutthatagoodperformanceofGSdoesnotguaranteeSD.
McLaughlinetal.
(2012)reportssimilarresultsusingatimeseries(1760e2000)forproduced,naturalandhumancapitalinUnitedKingdomtoderiveGS.
UsingthecoalextractiontorepresentthedepletionofBritain'snaturalresources,theystatethatlessthan20%ofBritain'scoalhasbeenextractedsince1760.
McLaughlinetal.
(2012)questionwhycoalextractionequatestoadiminishingofwealthifmostBritishcoalwillnotbeexploitedonaplausibletimeframe.
Theseauthorsclaimthattheconnectionbe-tweentheextractionofnaturalresourceandprogresswithintheGSframeworkmustbereevaluatedthroughdenedtimeframes.
Unfortunately,therearestillnoglobaldatatosupporttheval-idityofthesealternativeapproaches.
Mostofthestudiesdealwithpartialresultsshowinglocalorcountry-specicinitiatives(SebastienandBauler,2013;Heberlingetal.
,2012),methodologicalchallengestoecosystemaccounting(EdensandHein,2013),andpotentialeconomicresults(BhattacharyyaandHodler,2014)withoutalongitudinalapplicationofthesemethodsforlongpe-riods.
AlthoughausefulpolicysuggestionthatcomeoutfromGreenGDPsisthatcountriesthatdependonnaturalresourcesneedtoincludethemintotheformationofotherformsofcapital,thevalueandtheuseofGreenGDPsinpolicy-makingstilldependonaccuratemeasuresofthenaturalcapitallossesandtheirrelation-shipwithprogressandwell-being.
2.
2.
SocializingGDPAforemostproblemofGDPisthatitdoesnottakeaccountofthewelfareimplicationsofvariousformsofsocialinequality.
TheeconomistAmartyaSen(Sen,1981,1992)addressedtheproblemofsocialinequalityanditsimplicationsforsocialwelfare,andhisvisionwasexploredtocreatetheHumanDevelopmentIndex(HDI).
Theintentwastoverifyhowtheprovisionofeconomicgrowthandhumandevelopmentisorisnotimprovingindividualprosperityinnationalscenarios.
Theindexaccountsfor"longevity,knowledgeanddecentlivingstandards"asrepresentativesforpeople'sca-pacitytolivelongandprosperouslives.
Lifeexpectancyatbirthrepresentsotherfeaturesofwellbeingsuchasgoodnutritionandhealth.
Knowledgeisincludedusingliteracyrateandschooltime,asaproxyoftheadultpopulationlevelofeducation,andaccesstoaproperstandardoflivingisrelatedwithGDPadjustedtoreectbuyingpowerparityusingalogarithmofrealGDPpercapita.
DespitetheHDIbeingconsideredasastepforwardinrelationtoGDPalone,ithasbeenheavilycriticizedfornotconsideringtheenvironmentalcostsofdevelopment(Hsuetal.
,2013;Carmignani,2013).
Theauthorsalsorecognizedthedifcultyofquantifyingtheresourcesneededforaproperstandardofliving,civilliberty,guaranteedhumanrightsandpersonaldignity(UNDevelopmentProgram,1990).
Aseriesofrelatedissuesisalsolisted,suchastherelationshipbetweenconsumptionandwell-being,employmentandwages,theimpactonemploymentbytechnologicaladvances;andinequality,whicharenotrepresentedbytheHDI(Vergragt,2012).
SomelimitationsoftheHDIarehighlightedtoexplaintheallegedsideeffectsofprogress(suchasunemployment,crime,healthneeds,environmentalpollution,familydisruption,etc.
).
TheHumanPovertyIndex(HPI,2010),forexample,derivesfromHDIandhasbeenreportedsince1997bytheUNDP.
HPImeasuresthelossinbasichumandevelopmentintermsofthepercentageofpeopletowhomlifeexpectancydoesnotreach40,thepercentageofuneducatedadultsandthecreationofeconomicconditionsforanacceptablestandardoflivingintermsthepercentageofpeoplewithoutaccesstohealthservicesandsafewaterandthefractionofchildrenunderveyearswhoareunderweight.
TheHPIwasbuiltfortheapplicationtodevelopingcountries(HPI-1),andindustri-alizedcountries(HPI-2)becausehumandeprivationchangeswiththesocialandeconomiccircumstancesofthecommunity.
2.
3.
Greeningandsocializing:theSustainableWellbeingIndicatorsOneoftherstmeasuresofeconomicwelfarewasMEW(MeasureofEconomicWelfare)developedbyNordhausandTobin(1972).
AsanalternateforGDP,thisindexmeasuresconsumptionasaproxyforeconomicwelfare.
TheMEWisdesignedtomeasureeconomicwelfarebyaddingupthebenets,suchasthecon-sumptionofgoodsandserviceswhilesubtractingcostssuchaspollution.
Amongseveralmodications,investmentsinhumancapitalforeducationandhealthcareareexcludedfromthecalcu-lation,aswellasexpendituresfornationaldefense,policeandsanitation.
TheresultsofMEW,accordingtoNordhausandTobin,aresosimilartothatofGDPthatanindependenteconomicwelfaremeasureisdeemedtobesuperuous.
NordhausandTobinalsoprovideanevaluationcalledSMEW(sustainablemeasureofeco-nomicwelfare)includingthelevelofMEWthatiswell-matchedwithpreservingthenaturalcapital.
SMEWvaluestheUSoverthe1929e1965periodwerecomparedtoGDP,andtheconclusionwasthatGDPgrowthremainedasatisfactoryguideforpolicy(AfsaB.
F.
Giannettietal.
/JournalofCleanerProduction87(2015)11e2514etal.
,2008).
However,anumberofothermeasuresofeconomicwelfareweredevelopedafterMEW,suchastheIndexoftheEco-nomicAspectsofWelfare(EAW),whichincludesenvironmentalcosts(Zolotas,1981).
Inspiredbythesetwoattempts,MEWandEAW,Dalyetal.
,1989developedtheISEW(IndexofSustainableEconomicWelfare),anindexthataccountsforcurrentenvironmentalissuesandlong-termsustainableuseofnaturalecosystemsandresources(ValentinandSpangenberg,2000;Pulsellietal.
,2008).
TheISEWusesGDPasafoundationandmeasurestheportionofeconomicactivitythatprovidesdirectimprovementsinthequalityoflifebyconsideringthatwelfareisaffectedbytheowofservicestomankind,ratherthanbythecurrentproductionofmarketablegoodsandservices(England,1998).
TheISEWwasreviewedandrenamedtheGenuineProgressIndicator(GPI),in1995,asaproposaltoreplaceGDPby'RedeningProgress,'anonprotorganization.
TheGPImeasurestheprogressofnationsbyconsideringhumanwelfareandtheenvironment(Talberthetal.
,2007).
TheindicatorusesthesamemethodologyforcalculatingGDP,butdeductsthecostsarisingfromitemssuchascrime,pollution,environmentaldegradationanddepletionofre-sources,whileitaddsitemsasvolunteerwork.
Byuntyingactivitiesthatdiminishwelfarefromthosethatenhanceit,theGPIintendstorevealthesustainableprosperity(PosnerandCostanza,2011).
AnalysesconductedintheU.
S.
showthat,from1970,theGPIde-creaseswhiletheGDPincreases.
AstudypublishedbyKubiszewskietal.
(2013)presentsestimatesofGPI/capitaover1950e2003for17nationsshowingthatglobalGPI/capitapeakedin1978,atthesametimethattheglobalEcologicalFootprintexceededglobalbiocapacity.
TheISEWandGPIwerecriticizedextensivelyforlackingasolidtheoreticalfoundation(Harris,2007;Brennan,2013).
ThemaincriticismwasthatISEWandGPIwereunabletoreectbotheco-nomicwelfareandsustainability.
GPIisameasureofeconomicwelfarethatneedstobesupplementedbybiophysicalindicatorstodeterminewhethertheeconomicwelfarebeingenjoyedissus-tainable(CostanzaandPatten,1995;Lawn,2013).
ApplicationsofthesenewaccountingsystemsprovideundeniableindicationofagrowinggapbetweenGDPandeconomicwellbeing(Pulsellietal.
,2008,2012,BeaandSantos,2010),indicatingthat,alongtime,economicactivitymaybeself-cancelingfromawelfareperspective(Max-Neef,1995).
AllthesealternativesorsupplementstoGDPstillhavelimita-tions,whichinclude:thesubjectivityindecidingwhichexpensesarevaluableandmustbeaddedtothetotalandwhicharedisruptive,andmustbesubtracted;theneedforconsensusonhowtovaluesocialandenviron-mentalitemsthatarenotreportedinmonetaryterms(ecosys-temsservices,naturalresources,volunteerlabororillegalactivities);theneedforconsensusonhowtoquantifythecostsofnaturalresourcesdepletion;thesubjectivityofselectingandclassifyingthemostrepresen-tativevariablesand/orindicatorsthatformthebasisoftheindices.
Besides,therearedifferentwaystoassignmonetaryvaluestoenvironmentalandsocialitems,suchastheContingentValuationmethod(WhiteheadandHaab,2013)thatusessurveystoguessti-matepeople'swillingness-to-payforspecicnature'sgoodsandservices,ortheHedonicPricingmethodthatfocusesprimarilyonpropertymarketsthroughanalyzingpricesinuencedbyitssur-roundingproperties(SanderandHaight,2012).
TherearealsoothertechniquesformonetaryvaluationsuchasFactorIncome,AvoidedCostandReplacementCostthatcanbeused(Pearceetal.
,1994).
Allofthesemeasures,likeGDP,showamacroscopicviewandstillshowweaknesses,buttheycanandarebeingusedtoassistlocalandregionaldecision-making(Pulsellietal.
,2008,2012).
Nevertheless,thesemeasuresrepresentanimprovementonthemisuseofGDPandeconomicgrowthasarepresentativeforwell-being.
3.
EffortstoredenetheindicatorsThedifferencesbetweenmeasurementsofGDPgrowthandgreenGDPschallengethenotionthatincreasedproductionequalsprogress.
Therecognitionofanewviewpointprovidesanoppor-tunityfortheconstructionofanalternativeframeworkformeasuringprogress,whichemploysdifferentapproachesfromthatusedinmeasuringGDP.
TheexperiencesinchangingorcomplementingGDPasanin-dicatorofprogressshowthathighconsumptionofnaturalre-sourcesdoesnotautomaticallycreatewellbeing(Repettoetal.
,1989;ElSerafy,1993,1996),andthatitwouldbepossibletopro-ducewellbeingwithoutexcessiveconsumption.
EffortstocreateaprogressindicatorconsistenttoSDcanbedividedintothreecate-gories:thosethataremostlycommittedtoassessingtheenviron-mentaldriverstowelfare,thosedrivenbyhumanneedsandthose,whicharedesignedtoincorporatebothapproaches.
3.
1.
EnvironmentallyorientedindicatorsMostoftheenvironmentallyorientedindicatorsweredesignedtomonitorprogresstowardSD,insteadofmeasuringsocietalprogress,andthreepromisingtechniquesthatshowpotentialforsustainabilityassessmentatvariousscalesareexergy,emergy,andtheecologicalfootprint.
AccordingtoBastianonietal.
(2005),theuseofenvironmentalorientedindicatorsforSDassessmentisdefensibleasaresultofHermanDaly'srstprincipleofsustain-ability(Daly,1990),inwhichrenewableresourcesshouldnotbeusedmorerapidlythantheycanberegenerated.
Theseprinciplesimplythatsomeappropriatemetricsformaterialandenergybal-ancesshouldbeadoptedtogobeyondthenarrowlimitsoftheGDP.
Atthispoint,itisimperativetomakeadistinctionbetweenweakandstrongsustainability.
TheindicatorsdescribedinSection2evenframingtheproblemintermsofhumanwellbeing,arebasedontheeconomicapproachandaccountonlyforthenaturalenvi-ronmentfunctions/resourcesprovidingforhumansandtheeco-nomicsystem.
Thoseindicatorsaccountfortheoptimalincometoachieveprogress/well-being,andaimtoprovideinformationonhowmuchtoconsumeatthepresentandhowmuchtospendinthefutureinbuiltcapital.
However,thereisnoclueifthisoptimalincome,issustainableinthesenseofallowingwelfareforfuturegenerations.
Ontheonehand,theconceptofweaksustainabilitydoesnottakeaccountthethresholdsinnaturalresourcesorlimitstothesubstitutabilityamongnaturalandproducedcapital.
Ontheotherhand,theenvironmentallyorientedindicatorsarebuiltuponbiophysicalvariablesthatshoulddeterminethepossibleecologicallimitstogrowth(Nourry,2008).
Undertheconceptofstrongsus-tainability,naturalcapitalcannotbesubstitutedbyhumanandsocialcapitals.
Someindicatorsassesstheenergyavailabilityforthesocietalwellbeing.
Energyanalysisfocusesonalloftheenergyowsintheeconomy,whicharecommonlyassociatedwithmeasurementofprogress,suchasthenight-timesatelliteimagerysustainability(Sutton,2003).
Thismeasureisdonebydividingtheamountoflightenergyemittedbyanation(measuredbyanight-timesatelliteimage)bythetotalnation'secosystemcapital(measuredbyaland-B.
F.
Giannettietal.
/JournalofCleanerProduction87(2015)11e2515coverdataset).
Theanalysisprovidesanoverviewoftheeffective-nessofresourceutilizationandshowswherelossestakeplaceandtechnologicalimprovementscanbemadetoincreaseenergyef-ciencyanddistribution.
Energyanalysiscanalsobedoneusingspecialenergymeasures,suchasexergyandemergy.
Thesemetricsprovidematerialandenergybalances,andcanbeadoptedaspartofawide-rangingsustainabilityassessment.
Bothexergyandemergyanalysisconsiderthequalityandtheamountofenergy(RosenandDincer,2001;Herendeen,2004).
Odum(1996)createdanassessmentsystemforemergysyn-thesiswhereallresourcesandgoodsareexpressedintermsoftheenergyneededforproducingthem.
Heintroducesemergyasameasureofrealwealthtoaccountforevaluationofenvironmentalandeconomicuse.
Theemergyistheembodiedenergyrequiredtoproducegoodsandservices,anditisusefulforassessingenergyscarcity,availability,andenergyefciencyinthemanagementofnaturalresources(HoangandRao,2010;Warretal.
,2008).
Akeyimprovementoftheemergytheoryisthatitaccountsforavail-abilityofthefreeecologicalresources(sunlight,rain,wind,tides,etc.
)anddifferentiatesrenewableresources(agriculturalproduc-tionhydroelectricity,etc.
),non-renewable(fossilfuels,metals,mineralsandsoils)andimportedresources(services,fuelsandmaterials),withresultsreinforcingemergyaccountingasaself-consistentmethodwithhighrobustness(Giannettietal.
,2013a,b).
Adebatableaspectofemergysynthesisisitsapproachto-wardsconnectingenvironmentalresourcesandtheireconomicuse.
Odum(1996)claimsthatrealwealthderivesfromenvironmentalresourceswhiletheincomerequiredforprogressdependsonhowmuchrealwealth(measuredinemergy)isavailable.
BydividingtheemergyusebytheGDPofaneconomy,itwouldbepossibletodenetherealbuyingpowerofmoneyinagivencountry,andconsequently,theoptimalincometosupportprogressandwell-being.
ANationalEnvironmentalAccountingDatabase(NEAD,2014;Sweeneyetal.
,2007)isavailableprovidingdetailedinfor-mation,from2000,2004and2008.
Forover150countries,thefullassortmentofresourcesthatliebeneatheconomiesincludesenvironmentalows,naturalcapitalstocks,metals,fuelsandeconomicallytransformedgoodsandservices.
Severalpublicationsdemonstratetheuseofemergytoevaluatenationalsustainabilityrepresentingvariousaspectsofnations'conditions(BrownandUlgiati,2011;LouandUlgiati,2013),andanalyzingthepathstoSD(Giannettietal.
,2010,2013;HossainiandHewage,2013)usingthemethodologyasanalternativetomeasuringrealprogressbeyondGDP.
Exergyoravailableenergyisathermodynamicpropertyofasystemthatcanbedenedasthemaximumworkthatcanbeextractedfromthesystem(Baloccoetal.
,2004)andcanbeperceivedasameasureofitsqualityorpotentialtochange.
Ac-cordingtoDincer(2002),exergyaccountingcanprovidepolicyguidanceonSDsinceitaddressestheimpactontheenvironmentofenergyutilizationandquantiesenergylossesandwasteprovidinginformationforefcientresourceuse.
ThereareexamplesofexergyanalysesforChina(Shaoetal.
,2013),Canada(BlighandIsmet,2012),andtheUnitedStates(Ayresetal.
,2003).
Threemethodsderivefromexergyintendingtoamplifycalcu-lationsinordertomeasureprogressandsustainability:ExtendedExergyAnalysis(EEA),EcologicalCumulativeExergyConsumption(ECEC)andeco-exergy.
EEAcorrelatesexergyandeconomicvaluebyprovidingatheoryofvaluesimilartothatofemergysynthesis,addressingandquantifyingcapitalowsandlaborinthermody-namicterms(MiliaandSciubba,2006;Sciubba,2001,2003a,b).
TheECECaccountsforthefreeecologicalprocessesusingemergyderivedprocedures(UkidweandBakshi,2007),butthisapproachwasonlyappliedtoUS(UkidweandBakshi,2004).
Finally,theeco-exergydenestheecosystem'shealthasthedistancefromther-modynamicequilibrium(BendoricchioandJorgensen,1997;Verdescaetal.
,2006).
Asanindicatorofsustainabilityandecosystemhealth(Jorgensen,2006a,b;2007;JorgensenandNielsen,2007),eco-exergyhasrecentlybeenusedinlargerhu-mansystemssuchascountries(Jorgensen,2006a).
However,despitethestronganduniversallyacceptedmethodologicalfoun-dationsofexergy,itsuseinlargersystemsisstillunderdevelop-ment,andtherearenoglobaldatatosupporttheexergyvaliditytomeasureprogresstowardssustainability.
Themostknownbiophysicalmethodtoevaluateprogressto-wardssustainabilityistheEcologicalFootprint(EF),possiblyduetoitssimplevisualtoolthatquicklycommunicatestothenon-experts.
TheEFwasdevelopedtoaccountforowsofmatterandenergyintoandoutofthehumaneconomyandtoconvertthoseowsintoameasureoftheareaoffertilelandandwatersupportingthoseows(WackernagelandRees,1996).
Thismethodologyassumesthatitispossibletofollowthecourseofallthematerialsandhu-manservicesrequiredsupportingapopulationandthatmostoftheseinputscanbeconvertedtoacorrespondingbiologicallyproductivearea.
Since2002,theEFhasbeenusedtocalculatethehectaresusedtosustainhuman'sconsumptionandwastegeneration.
Thesebiophysicalapproachesintendtoexplaintherelation-shipswithincomplexhumansystemsthroughnaturalscienceperspective.
Nevertheless,theysharetheideaofstrongsustain-abilitywithoutbeingdirectmeasuresofit.
Furthermore,allthreemethodsuseacommonconceptofvaluethatisentirelydifferentfromthatofGDP.
Emergyisaccountedbasedonhowmuchenergy,effort,materials,time,etc.
areinvestedtoproducerealwealth(Odum,1996),Exergyestimateshowmuchworkisembeddedinacommodityintheformofmaterials,labororcapital(Sciubba,2003a),andtheEFisobtainedaccordingtohowmuchbio-productivelandmustbetakenbyagivenpopulationinordertoachievewelfare.
Theircorefundamentscontrasttothoseoftradi-tionaleconomicanalysisastheyconsidertheenvironmentallimitstodevelopandgrowth.
3.
2.
SociallyorientedmeasuresThephysicalqualityoflifeindex(PQLI)isconsideredtherstcompositemeasureofprogressthatisnotbuiltuponutilizingin-comeoreconomicwellbeing.
ThePQLIemploysanindexrangingfrom0to100basedonequalweights,whichmeasuresinfantmortality,lifeexpectancyandbasicliteracy(Morris,1996).
ThePQLIisbasedontheassumptionsthatthereareseveralpatternsofdevelopment,whichtheindicatormustmeasureresultsandnotinputsandthatitshouldbeabletoreectthedistributionofsocialneeds.
Moreimportantly,itiseasytoconstructandeasytoun-derstand(Morris,1979).
Theindexshowsthatsomecountrieshavemuchpoorerlife-qualityresultsatrelativelyhighpercapitain-comes,suggestingthatthegrowthofdisposablepersonalincomeovertimenotnecessarilyimproveprogress.
Anothernon-monetaryapproachtomeasuringprogressistheGrossNationalHappiness(GNH).
Thisconcept,whichisoftenmentionedasanalternativemeasureofprogress,wasdevelopedinanattempttoestablishanindicatorthatmeasuresqualityoflifeorsocialdevelopmentinmoreholisticandpsychologicaltermsthanGDP.
GNHwasoriginallysuggestedbytheKingofBhutanintheearly1980sincommitmenttobuildinganeconomythatwouldserveBhutanesespecicculture.
ThedevelopedGNHisaconcep-tual,philosophicalandpoliticalframeworkdesignedtomeasurethepopulation'sgenerallevelofwell-being.
ItisbeingusedtoguideBhutanesepoliticaldecisionsbaseduponBuddhistspiritualvaluesratherthanonincreasingeconomicactivity(UraandGalay,B.
F.
Giannettietal.
/JournalofCleanerProduction87(2015)11e25162004).
ThefourpillarsofGNHareestablishmentofpropergover-nance,thepromotionofSD,theconservationofthenaturalenvi-ronmentandthepreservationandpromotionofculturalvalues.
Progressonachievingthegoalswithinthesefourpillarsisinvestigatedthroughspecicindicators/contributorstohappiness:timeuse,livingstandards,goodgovernance,psychologicalwell-being,communityvitality,culturaldiversityandresilience,health,educationandecology.
GNHstressescommunalhappinesstobeaddressedstraightthroughpublicpoliciesinwhichhappinessbecomesanexplicitcriterionindevelopmentprojects.
Amongtheachievements,guidedbywithGNHresults,Bhutan'sauthoritiesdivulgeimprovementsinhealthservicesandoftheaccesstopri-maryeducationthroughanetworkofcommunityschools,aswellasanincreaseintheliteracyrateaspartofabroadergoalofensuringeducationforallcitizens.
Despitethecriticismclaimingthatthismodeldoesnotallowinternationalcomparisonofwell-being,theconceptofGNHasadevelopmentphilosophyhasevolvedintoaninternationalconscience,introducingequalityandhappinessasnecessaryvariablestomeasuresocietalprogress.
DifferentandsometimessimpliedversionsoftheGNHconceptmaybefoundintheGallup-HealthwaysWellbeingIndexandtheGNHproposedbythePresidentoftheInternationalInstituteofManagement,MedJones(http://www.
iim-edu.
org/grossnationalhappiness/).
Bytreatinghappinessasasocioeco-nomicdevelopmentmetric,thisversionofGNHtracessevenkindsofdevelopmentofwellness(economic,environmental,physical,mental,workplace,andpolitical)viadirectsurveyandstatisticalevaluation.
TheGallup-HealthwaysWellbeingIndexassessesUSresidents'healthandwell-being.
ByinterviewingAmericancitizenseveryday,thisindexprovidesreal-timemeasurementsandobtainsinsightsasaresourceofhealthguresandbehavioraleconomicdata.
Thein-depth2012statereportincludedcityandcongres-sionaldistrictlevelndingsforeachAmericanstate(http://www.
well-beingindex.
com).
Theconcernwithnationalhappinessisalsospreadinthesocialsciences.
TheSubjectiveWellbeingofNations(SWB)wasreportedfor55nations.
TheSWBsurveysshowthathighincome,individ-ualism,humanrights,andsocietalequalityarestronglycorrelatedwitheachotherandSWBacrosssurveys.
CulturalhomogeneityandincomegrowthcomparisonshowloworinconsistentrelationswithSWB(Dieneretal.
,1995,1999).
Kahnemanetal.
(2006)re-portedthattherelationshipbetweenhavingmoreincomeandhappinessisextremelyexaggerated.
Theseresearchersdevelopedthe'DayReconstructionMethod,'atooltoassesspeople'squalityofdailylife,whichcreatesan"enjoymentscale.
"Kahnemanetal.
(2006)foundthatpeoplewithabove-averageincomeswererela-tivelysatisedwiththeirlivesbutcouldnotestablishthattheywerehappierthanotherswithlowerincomes.
Arguingthattheeffectofincomeonlifesatisfactionistransient,theyconcludedthatpeopleoverestimatethecontributionofincometohappiness.
ComparisonsofwellbeingandpercapitaGDPshowthat,atacertainincomelevel,happinessdoesnotincreasesignicantlywithadditionalincome,andeconomicgainsbeyondathresholdnolongercorrelatewithincreasesinpersonalwellbeing(Inglehart,1997).
BlanchowerandOswald(2008)termedtheEasterlinparadox(1974),whichreferstothefactthathappinessdataaretypicallyunchangeddespitesignicantincreasesinincome.
Theseauthorsafrmthattheofcialgovernmentstatisticsshouldmatchobjectiveandsubjectivewellbeingdata,andthatsustainabilitymustbethecriteriontobeapplied.
White(2006)showedthatthereisincreasingpoliticalattentioninusingmeasuresofhappinessasanationalindicatorincombi-nationwithmeasuresofwealthandreportthatthenation'slevelofhappinessisdirectlyassociatedwithhealthlevels,followedbywealthandprovisionofeducation.
However,contrarytotheseideas,DiTellaandMacCulloch(2008)ndthatthehappinessre-sponsesofaround350,000peoplelivingintheOECDcountriesbetween1975and1997arepositivelycorrelatedwiththelevelofincome.
TheWorldDatabaseofHappinessoffersacompilationofstudiesanddatarelatedtohappinessandsatisfactionsurveys(Veenhoven,2013).
Itisanarchiveofresearchndingsonsub-jectiveenjoymentoflifewith7380publicationsinthebibliog-raphyofhappiness,ofwhich3579reportsonempiricalstudies,with960measuresofhappiness,mostlybasedonsinglesurveyquestionsvaryinginwordingandresponsescale.
Thearchivein-cludes5639distributionalndingsfromthegeneralpublicin164nationsand1761studieswithndingsin150specicpublics.
Italsoincludes12,562correlationalndingsobservedin1695studiesthatareexcerptedfrom1193publications.
AsshownbythenumberofstudiescollectedintheWorldDatabaseofHappiness,therehasbeenanincreaseinresearchonsociallyorientedin-dicatorsforevaluatinghumanwellbeingbasedonself-reportingbyindividualsandgroups.
Thistypeofresearchrelatestosub-jectivewellbeing(SWB),andisdesignedtocorrelatesatisfactionwiththequalityoflife,whichdependonpeople'stemperandemotions(DienerandSuh,1999).
Becausesociallyorientedin-dicatorsarebasedonthejudgmentsofthesurveyrespondentsratherthanonquantiableinputsofcurrencyormaterialpos-sessions,thereareconcernsthatthesesubjectivemeasuresarenotbasedinfacts,andshouldbelessvalidthanobjectivemeasureslikeGDP.
Thereisalsoaconcernthatculturaldifferencesmakeitcomplextocomparetheresultsacrossdifferentethnic,gender,age,religion,andotherculturalboundaries.
However,objectivemeasuressuchaslifeexpectancy,ratesofdisease,andGDParealsoproxiesforwellbeingthathavebeenidentiedthroughtheper-sonaljudgmentofanalysts,expertsanddecisionmakers;hence,thechoiceremainsbetweensubjectivemeasuresandproxies(Costanzaetal.
,2007).
3.
3.
CombiningsocialandenvironmentalconcernsSeveralapproachesofmeasuringoverallprogressorwellbeinghavebeenrecommended,developed,andappliedinrecognitionthatGDPdisregardssocialandenvironmentalwell-being.
Manygovernmentsandnon-governmentalorganizationshavetakentheinitiativeanddevelopedtheirownindices.
Mostofthemarecompositeindexesmergingdifferentmeasuresintoasinglenum-berconsistingofGDPplussocialandenvironmentalconcerns.
TheWellbeingIndex(WI)isbasedonthehypothesisthatahealthyenvironmentisessentialforhealthyhumans(Prescott-Allen,2001).
ItwasusedintheevaluationfortheWorldSummitforSustainableDevelopmentinJohannesburg2002andincluded180countries.
TheWIconsistsoftwoindices,theHumanWell-beingIndex(HWI)andEcosystemWellbeingIndex(EWI).
HWIincludespopulationandhealthparameters,communityandequityissues,wealthindicators,knowledgeindicatorsandculturewhileEWIaggregatesland,waterandairdimensions,biodiversityissuesandresourceuseindicators.
Theaggregationofthesedimensionsismadebyaweightedarithmeticmeanofvariablesthatarenormalizedagainbyaproximity-to-targetapproach.
BothindicesaregivenequalweightwhencombinedintoatoolcalledtheBarometerofSustainability.
TheHappyPlanetIndex(HPI)waslaunchedin2006,bytheUK'sNewEconomicsFoundation,intendingtochallengeexistingindices,suchasGDPandHDI.
TheHPIcombinesenvironmentalimpactandwelfaretodeterminetheenvironmentaleffectivenesswithwhichpeoplelivelongandhappylives,convertingtheearth'sniteresourcesintowell-being.
Itdoesnotdisclosetheworld'shappiestcountry,butintendstoreecttheaveragelengthofaB.
F.
Giannettietal.
/JournalofCleanerProduction87(2015)11e2517happylifeproducedbyagivengroupperunitofplanetaryre-sourcesconsumed.
HPIusesthreedimensions:lifeexpectancyatbirth,lifesatisfaction,andecologicalfootprint.
The2012reportshowstheresultsfor151countriesthatdepictnotonlyhowacountryranksontheHPIscale,butalsohowthethreecomponentsaffectedtheranking(Abdallahetal.
,2012).
TheEnvironmentalSustainabilityIndex(ESI)intendstomea-sure"overallprogresstowardenvironmentalsustainability"(Estyetal.
,2005).
Thisindexfocusesmainlyonenvironmentalissues,butitalsoincludessocialandinstitutionalcomponents.
TheESIconsistsofvecomponents:environmentalsystems,reducingenvironmentalstresses,reducinghumanvulnerability,socialandinstitutionalcapacityandglobalstewardship.
Eachofthesecom-ponentsisbuiltbasedonvarioussub-indicators,whichincorporateindicatorsofphysical,biologicalandchemicalstate,aswellasin-dicatorsofenvironmentalpressuresandtheresponsesofsociety.
Indicatorsandvariableswerechosenbasedonthewell-established"PressureeStateeResponse"environmentalpolicymodel.
Theis-suesintegratedandvariablesusedwereselectedthroughacarefulanalysisoftheenvironmentalliterature,surveysofexistingdata,accurateanalysis,anddiscussionwithspecialists,scientists,andpolicymakers(Estyetal.
,2005).
ComplementarytotheESIthatfocusontheenvironmentaldimensionofsustainability,theEnvi-ronmentalProgressIndicator(EPI)addressesthenecessityforameasureofpolicyperformanceinreducingenvironmentalloadonhumanhealthandpromotingecosystemvitalityandsoundnaturalresourcemanagement.
TheEPIfocusonasetofenvironmentalissuestrackedthroughoutsixpolicycategoriesforwhichallgov-ernmentsarebeingheldresponsibly(Estyetal.
,2006).
Withamoresimpliedstructure,theSSI(SustainableSocietyIndex)alsocom-binesenvironmentalissueswitheconomic,socialandinstitutionalcomponentsdepartingfrom21indicatorsdividedintothreecate-gories:Economic,EnvironmentalandHumanwellbeing(VandeKerkandManuel,2008).
WI,HPI,ESI,EPIandSSIareexamplesofcompositeindexes,whichmightbecommunicativeandinuentialtoolsinhelpingpolicyanddecisionmakersprovidedtheywereconstructedusingamethodologyclearandtransparent.
However,uncertaintyandmethodologicalapproachesarestillforemostissuestobeconsid-eredbothinconstructingthecompositeindicesaswelltheirusebydecisionmakers.
Sensitivityisofparticularimportanceforcom-positeindicatorscombiningsocialandenvironmentaldevelop-mentbecausetheseaspectsmayhaveoppositedirections.
Ifoneforinstanceaggregatessocialandenvironmentalindicatorstheriskoccursthataatandinsensitiveindicatorisobtained.
Ontheotherhand,accordingtoHenderson(1996),singlenumberindicatorsareunabletomeasurethemultiplepathstodevelopment,andsepa-ratedindicatorswouldavoid"theGDP'soversightofsimplypilingoutdatedeconomicformulasontopofoneanothertocomeupwithanaggregatescore.
"AsetofnationalindicatorswasshapedtoestablishtheprioritiesoftheUnitedNationsConferenceonEnvi-ronmentandDevelopmentinRiodeJaneiro,Brazilin1992,tosupplyacompletepictureofsocietaldevelopment(UNCSD,2001).
Theindicatorsarenotintegratedoraggregated,andtheusermustrecognizethemeaningofeachresultanddeterminewhatisimportanttodeal.
ExamplesoftheUNCSDindicatorsincludewaterqualitylevelsfortheenvironmentalgroup,nationaleducationlevelsandpopulationgrowthratesassocialdeterminants,thenumberofratiedglobalagreementsinthegroupofinstitutionalsustainability,andGDPpercapitafortheeconomicsphere(UNCSD,2001).
Countryprolesandnationalreportsusingtheseindicatorshavebeenpublishedbymanymembercountriessince1994.
TheCanadianIndexofWellbeingestablishesthemeasurementofasetofindicators:democraticengagement,education,com-munityvitality,environment,healthypopulations,leisureandculture,livingstandardsandtimeuse.
Inthesameway,theCountryFuturesIndicatorsuseseparateandcomplementaryin-dicatorstosupplementGDP.
Indicatorsincludeeducation,health,nutrition,basicservices,shelter,politicalparticipationanddem-ocraticprocess,childdevelopmentandstatusofminorities,environmentalpollutionlevels,environmentalresourcedeple-tion,biodiversityandspeciesloss,culturalandrecreationalre-sources.
Followingthesameidea,theCalverteHendersonQualityofLifeIndicatorsconsiderseconomic/environmental/socialtrendsandoutcomesthroughasystemicapproach(Henderson,1996).
The12indicatorsincludeenergy;environment;education;publicsafety;nationalsecurity;employment;health;humanrights;in-come;infrastructure;leisureandhousing.
Eachoneisdividedintomorespecicindicators,which,asawhole,wouldcoverthein-formationneededtoachievelifequality,withadepththat,throughthetraditionalindicators,itwouldbeimpractical.
Theywererstpublishedinareportin2000andhavebeenmaintainedonlinesincethenatwww.
calvert-henderson.
com(Hendersonetal.
,2000).
Othersimilarsuggestionsofferingmultipleandseparateindicatorsarepublishedandapplied,andamongthemaretheMeasureofAmerica(http://www.
measureofamerica.
org/),theFundforPeace'sFailedStatesIndex(http://ffp.
statesindex.
org/rankings-2013-sortable,theUnitedNations'SystemofNationalAccounts(http://unstats.
un.
org/unsd/nationalaccount/)andtheUnitedNationsPopulationFund'sStateoftheWorldPopulationIndicators(http://www.
unfpa.
org/public/home/publications/pid/12511).
ItisworthtopointoutthatUnitedNationsDevelopmentProgrammewebsiteprovidesseveralmeanstoconstructone'sownindicator,whichcanbeconstructedincludingeconomic,socialandalsoenvironmentalissuesthatcanbeanalyzedthatcanbeassessedtogetherorseparately,accordingtotheneedordesireoftheanalyst(UNDP,2014).
Alltheseindicatorsweredevelopedasasuiteratherthanasacompositeindex,leavingoverallunderstandingtotheuser.
4.
Challengestomeasureprogress,welfareandwellbeingTheindicatorneedstobeconsistenttobefunctional,andtheunderlyingdatamustbeavailableattheappropriatetime,scaleandscope.
Additionally,anindicatormustproperlymeasureadvance-mentstowardthedesiredgoals.
Decision-makinghasbecomeprogressivelymoredata-driven,andenvironmentalandsocialresearchhasgonetooslowinthisregard(Giannettietal.
,2009).
Hence,becauseofthecomplexityofdatasets,inparticular,abouttheecosystemfunctioningandsocialdatadisclosure,thereareextensiveinformationgapsanduncertainties,anddecisionsandpoliciesareoftendependentongeneralobservations,experts'opinionsandeveningreenslogans.
Table1summarizesthemainchallengesfoundtoconstructanindexthatintendstogobeyondGDP,althoughsomeofthemcanbealsoassociatedtoit,andarecommonlydisregardedbyGDPenthusiasts.
Themosttypicaldifcultiesfoundduringindicesconstructioncanbemostlyrelatedtodatagathering,methodologyandhowtoincludesocietalissues(Table1).
SomeanalystsofalternativeorsupplementarymeasuresarguethatdataandmethodologyissuesaredifcultiesthatleadtotheuseofGDP(ParrisandKates,2003).
Thedata-methodologydifcultiesarecommontoallindicatorsandcanpartlybemanagedwiththeimprovementoftechniquesandtechnology.
Thesocial-institutionalbarriersmayeventuallybestilldifculttoovercome.
SomethoughtsaboutthecoverageoftheindicatorsIntimesinwhichprogress,welfareandwellbeingarehopelesslytiedtotheSD,itisalsoatimetoreectonhowindicatorsmayhelpB.
F.
Giannettietal.
/JournalofCleanerProduction87(2015)11e2518mankindinthepathtothissomewhatconfusetarget.
Itwasshownthatbiophysicalindicators(Odum,1996;Dincer,2002;WackernagelandRees,1996)provideinformationonthelimitsofthenaturalcapital(carryingcapacity)tobeusedtopromoteeco-nomicgrowthandsocialwelfare.
Itwasalsoshownthatsociallyorientedindicatorscanprovidevaluableinformationonthecon-ditionsandbehaviorofsocietaldevelopmentandthedelicaterelationshipbetweeneconomicgrowthandindividuals'happiness(UraandGalay,2004;Kahnemanetal.
,2006).
However,itisclearthatmonetaryorientedindicatorsfailnotonlytomeasurewell-beingbutalsotospecifyhowgreaterprogresscanbeachieved.
Degrowthiseminentandneededinmedium-termadjustinghu-manneedsandconsumptiontothecarryingcapacityoftheplanet(OdumandOdum,2006;ResearchandDegrowth,2010).
Fig.
1Fig.
1.
Interactionsamongsocial,economicandenvironmentalaspects.
Table1ThemaindifcultiesandchallengestoconstructanindextosubstituteGDP.
DifcultiesMainchallengesDatagatheringData-relateddifcultiesinvolvethereliabilityandavailabilityoftheunderlyingdata.
Availabilityrelatestothetime,scaleandscopeofthedatarequired,andanindicatorisreliableifachangeinitdeliversaccurateinformationofthechangeintheexaminedsystem.
Datamaybeunavailableatthetime,scaleand/orscoperequired.
Datacanbecompiledatthenational,state,andmunicipalityscalesandthesmallerthescale,thesmallerwillbethedependabilityandtimelinessofdata(Costanzaetal.
,2009).
Condentiallycanlimittheuseofavailabledata.
Insufcientcapacityfordatagatheringineachcountryforsocialorinstitutionalinformation.
Governmentsmayconcealdatarelatedtotheuseofstrategicreservesorthelackofhumanrights.
Standardizationfordatacollectionmaybeproblematicduetothenumberandvarietyofdifferentinformationtobecollectedwithindifferentcountriesandcultures.
Lackofregularityatwhichtheunderlyingdataisobtainable/available.
PeoplegatheringPeopledesignatedtochoosetherepresentativeindicatorscomposingthenalindexmaynotfundamentallyagreeontherelativevalueofoneamongothersIndicatorsmustbetheoutcomeofvariousstakeholders,andthechallengebeginsinjoiningpeopleinaglobaldiscussionregardingtherelativeimportanceofindicators'dimensions.
MethodologyAlternativeproposalsbuiltonenvironmentalorsocialdatamaybemoreorlessreliablethanGDPdependingontheirtheoreticalstructure.
Decisionsaremadeonitemstobechosen,howitemswillbemeasured,andhowdifferentitemswillbecombined.
Expertsassignedtoselectrepresentativevariablesorindicatorsmaynotconcuronthenatureofthevariablestobecho-senorontherelativeimportanceofoneindi-catoramongothers(Giannettietal.
,2009);inclusionofmeasuresthatareconsideredtobesubjectivesincetheyarebasedonsurveysofin-dividuals'perceptionsofwell-beingInregardtonormaliza-tionandweighting,thereisnogenerallyacceptedprocedure.
Thepossibilityofrathersubjectiveweightingsderivedbyopendiscus-sionprocessesamongexperts.
Both,normalizationandweightingposeagenuineproblemsincetheyaimatthecomparabilityofvariableseventhoughtheseareobviouslynotcomparable(BohringerandJochem,2007).
Normalizationandweightingofindicators,whichingeneralareassociatedwithTable1(continued)DifcultiesMainchallengessubjectivejudgments(Giannettietal.
,2009)revealahighdegreeofarbitrariness.
Theinclusionofsocietalissues/Thesocialandinstitu-tionaldifcultiesareingeneralbasedonopposi-tiontochange.
Aneedstandsforaprogressin-dextoreectsocietalandculturalvaluesComprisethedominanceofthegrowthstandard,ineffectiveleadership,andtheinuenceofthoseinterestedinmaintainingbusinessasusual.
ReportsconnectingGDPgrowthwithimprove-mentsinhumanwell-being,highlightingtherelationshipofgrowingGDPwitheconomicprogress,povertyeradicationoremploymentmaintenanceTheinterestofindustriesandbusinesseswhosecommercialsuccessde-pendsonincreasingeco-nomicactivity.
Thecorporationswhoseprotsdependonexter-nalizingthesocialandenvironmentalcostsoftheiroperations.
B.
F.
Giannettietal.
/JournalofCleanerProduction87(2015)11e2519illustratestheobservedsituationseparatingthesocial-economic-environmentaldimensions,andhighlightingtheproblemofcontinuouseconomicgrowthdisregardingtheenvironmentallimits.
AspecialvolumepublishedbytheJournalofCleanerPro-ductiondiscussindepththefuturetrendsofsustainabledevelop-mentresearchandpractice(BaumgartnerRJ.
2011).
Itisclearthatthecarryingcapacity,whichcanbemeasuredbybiophysicalindicators,limitseconomicgrowthindicatingthene-cessityofadegrowth(Latouche,2010;Daly,2013).
Atthelocalandgloballeveldegrowthreferstoanequitabledownscalingofcon-sumptionandproductionassuringhumanwell-beingandecolog-icalconditions(Schneideretal.
,2010).
Inthesameway,theideaofaProsperousWayDown(OdumandOdum,2006)statesthatprogress,wellbeingandevenhappinessshouldadaptrespectingthecapacityoftheplanetinprovidingresourcesandenviron-mentalservices.
Thefactthatdevelopedcountriesceasetodomesticallyproducingbasicmaterials(steel,aluminum,andchemicals),importingthemandthemanufacturedgoodsfromabroad,resultsinincreasingemissionsfromdevelopingcountriesanddecreasingglobalsustainability.
Thus,itistimetorecognizetheimportanceoftradeinnationalwellbeingandprogress.
Aproperindicatorshouldcheckprogressconsideringthenations'carryingcapacity,andwithasignicantportionofprogressandwellbeingdependingonoverseastradepartners,theindicatorshouldalsoaccountthepartialresponsibilityfortheemissionsgrowthindevelopingcountries;inequities,migrationsandpovertycausedbyunfairtradeandunpropernationalpolicies.
Selectedindicatorscanbeassociatedtoweak,mediumandstrongsustainability(Table2),dependingonhowoneconsiderstheexchangebetweennatural,economicandsocialofcapital(Daly,2008).
Table3providesanoverviewofthemainprogressmeasurementsreviewedinthispaper.
Inparticular,thetablere-viewsandcomplementstheadvantagesanddisadvantagesofthesemeasuresincapturingwhatthepresentresearchconsiderbeingkeycontributorstonationalprogresstowardsSD.
Alloftheexistingaccountshavepositiveandnegativeaspects,includingGDP,andthereisstillplaceforfurtherdevelopment.
EvenifproblemswithGDParerecognizedandmanydifferentmeasureshavebeenproposed,therearestilldifcultiesindeveloping,implementing,communicatingandusingalternativemeasuresofprogress.
Theidealindicatormustbeprojectedtosupplyinfor-mationaboutthesystem,itsconditionsandhowitssituationmaychangewithtime,thusprovidinginformationonwhethernationalpoliciesandprogramsaremovingsocietyintherightdirection.
ConsideringthatthenaltargetisSD,understrongsustainabilityconditions,theselectionofaparticularprogress/welfare/wellbeingindicatormustdenewhatismeaningfulforthenationalsystemsandtheirlimitsofnatural,socialandeconomiccapitals(Fig.
2),andalsotheircontributiontotheglobalsustainability,whichincludestheirresponsibilityinemissionsreduction(Bastianonietal.
,2014)andinusingnonrenewableresources.
TherepresentationinFig.
2includesthetimeperspectivecomplementingthatofferedbytheNaturalStep(TNS)framework(Robert,2000)andthoseprovidedbyLozano(2008),withtheso-cialdriversdividedintobasicwellbeing(education,heath,shelter,etc.
)andsubjectivewellbeing(happiness).
Atthemoment,econ-omygrowsalongwithwellbeingandhappinessattheexpenseofthecarryingcapacity.
Thesecondstage(medium-term)inthepathtosustainabilityinvolvestheeconomydegrowth,atthetimethatbasicwellbeingisalreadyprovidedtotheentiresociety,andthecurverepresentinghappinessfollowseconomicgrowthcurveforawhile,butfallsinaccordancewiththeresultsofKahnemanetal.
Table2Weak,mediumandstrongsustainabilitymodelsandtheirassumptions.
SDModelDescriptionWeaksustainabilityInweaksustainability,theinteractionbetweenhumanandnaturalsystemsoccursthroughseparateandunlimitedcompartments.
Thesumofallcapital(environmental,economicandsocial)iskeptconstant,withoutdifferentiatingthetypeofcapital.
Itallowsfornaturalresourcestobedepleted,solongasthisdepletionisreplacedbyincreasesofotherformsofcapital(Neumayer,2010).
Thus,indicatorsthataddtogetherscoresonenvironmentalandsocialissuesmaketheimplicitassumptionthatenvironmentalandsocialobjectivescanbesubstitutedforoneanother.
MediumsustainabilityInthemediumsustainability,oneconsidersthesustainabilityasthesumofallcapital(environmental,economicandsocial)withacommondomainarea,buttherearealsoindependentareas.
Inthistypeofsustainability,thesumofthethreetypesofcapital(ecological,economicandsocial)isalsokeptconstant,butexchangebetweendifferenttypesofcapitalisbelimited.
Sincethecriticallimitsforeachcapitalinunknown,cautionisrecommendedtonotdepleteresources(especiallynaturalcapital).
Themediumsustainabilityisanimprovementoverweaksustainability,butitsmainweaknessisthatitiscomplex,ifnotimpossible,toidentifythecriticallimitsforeachcapital.
Indicatorsaddscoresonenvironmentalandsocialindicatorsmaketheimplicitassumptionthatsubstitutabilityamongcapitalsispossiblebutlimited.
StrongsustainabilityInthestrongsustainabilitymodel,oneconsidersthattheenvironmentcontainshumansystemsandprovidesresources(suchasmineralsandenergy)andenvironmentalservices(suchasthedispersionofpollutants).
Theseresourcesandenvironmentalservicesarethebasisofsocio-economicdevelopmentandarethesourceoftherealhumanprosperity.
Humansystemsarecontainedinthenaturalsystemandeconomicandsocialcapitalcannotgrowbeyondtheintrinsiclimitationsofthebiosphere.
Indicatorsunderthestrongsustainabilityperspectivemakeimplicitthatthenaturalcapitalandbuiltassetsarecomplements(asopposedtosubstitutes).
Onlybymaintainingbothstocksintactcanguaranteelong-termeconomicwelfare(Neumayer,2010).
B.
F.
Giannettietal.
/JournalofCleanerProduction87(2015)11e2520(2006).
Comparisonsofcountriessustainabledevelopmentshould,infact,bereplacedbytheaccountingofglobalsustainability,orbythecontributionofeachcountrytoSD.
Thedirectassessmentofnationalindicatorsdoesnottorespondfundamentalquestions,suchaswho'sresponsibilityisunsustainabilityIsittheconsuming(importing),theproducing(exporting)country,orbothWhentheintentionistoassessindicatorsontheirqualityregardingcountries'localwellbeing,disregardingtheirglobalimpact,thisissuecanbeTable3Strengthsandcriticismsrelatedtoprogressmeasurementsandtheirlinktotheweak,mediumandstrongsustainabilitymodels.
MeasureNatureStrengthsCriticismsLinkwithSDmodelEmergyNon-monetaryapproachConsidersthepartofthegrosseconomicproductbasedonrealwealthItprovidesaclearmeasureofthemagnitudeofhumanac-tivityinaparticularareawithrespecttoavailableecologicalenergyowsComparablebetweennations.
Basedonobjectivedata.
Usesascience-basedevaluationsystemTreatsbuiltcapitalandnaturalcapitalascomplementsDifferentiatesrenewable,non-renewableandeconomiccapitalsProvidesasetofindicatorsandcanbeexpressedincurrencyequivalentsMayindirectlyaccountemis-sionsandwastegeneration.
LacksaclearsustainabilitythresholdIsapoorcommunicationtool,ofdifcultunderstandingbythegeneralpublicStrongSustainabilityEcologicalfootprintNon-monetaryapproachIndexbasedonconsumptionconvertedinareaunitsItmeasuresthehectaresusedtosustainlifestylesasrepre-sentativesofhumanconsump-tionandwastegenerationComparablebetweennations.
Basedonobjectivedata.
Powerfulcommunicationtool,ofeasyunderstandingbythegeneralpublicProvidesnoinformationonwhenspecicecologicallimitsrelatingtoecosystemservicesmightbereachedDonotdifferentiaterenewable,non-renewableandeconomiccapitalsLimitsofcalculationstransferallresultstocarbonemissionsanddisregardsterrestrialandaquaticbiomesThemethodusedtotranslateCO2emissionsintolandneedsfurtherdevelopmentEquivalencefactorsarenotavailabletothegeneralpublicMediumsustainabilityGrossnationalhappinessNon-monetaryapproach.
ParadigmshiftawayfromtheGDP.
StrikesabalancebetweenSpiritualismandmaterialism.
Basedonsubjective(surveys)data.
Accountsforqualitativeaspectsfundamentaltoprogress.
Comprehensiveapproachdividedintoninedomains.
Powerfulcommunicationtool,ofeasyunderstandingbythegeneralpublicOverlyambitiousmeasure,giventhecurrentstateofknowledge.
Subjectivenaturemayleadtopoliticalmanipulation.
Notcomparablebetweennations.
MediumsustainabilityUnitedNation'sCommissiononSustainableDevelopmentOperatesunderapressure-stateresponseframework.
Developedtoassistwithna-tionaldecision-making.
Assessesenvironmental,eco-nomic,socialandinstitutionalindicators.
Basedonobjectivedata.
Comprehensivemeasuree15themesand38subthemes.
Nointegrationbetweenthedifferentindicators.
Failstospecifyhowgreaterprogresscanbeachieved.
Leavesoverallunderstandingandinterpretationtotheuser.
ComparabilitybetweennationsdependsondataavailabilityMediumsustainabilityWellbeingindexMeasureswelfarebyaddingbenetsandsubtractingcosts.
Assumesmarketandwelfarearenotthesame.
Goesbeyondthescopeofthemarketandnationalaccountsinassessingwelfare.
Basedonobjectivedata.
UnlikeGDP,thenatureoftheneedisofconcern.
Excludesrenewableandnonrenewablenaturalre-sources,duetolong-runsubstitutability.
Under-representshumancapi-talimpactonprogress.
MediumsustainabilityCountryfuturesindicatorsandCalverteHendersonqualityoflifeindicatorsConsidertrendsandoutcomesofeconomic,environmentalandsocialthroughasystemicapproachProvidesspecicindicatorsthatcoverin-depthinformationBasedonobjectivedata.
GoesbeyondthescopeofthemarketandnationalaccountsinassessingwelfareNointegrationbetweenthedifferentindicators.
Failstospecifyhowgreaterprogresscanbeachieved.
ComparabilitybetweennationsdependsondataavailabilityMediumsustainabilityGreenGDPsAdjustsnationalaccountsforthedepletionofnaturalre-sourcesandchangesinqualityofthenaturalenvironmentComparablebetweennations.
Basedonobjectiveandsubjec-tive(pricingofenvironmentalvalues)data.
Highlightsquestionablepro-ductionandconsumptionpatterns.
Needstoemphasizeothernonmonetaryareas.
Dependsonseveralmethodsformonetizationofenvironmental.
Excludessocialcostsanddistributionalissues.
ResultsareheavilyinuencedbyGDPgures.
WeaksustainabilityB.
F.
Giannettietal.
/JournalofCleanerProduction87(2015)11e2521disregarded.
However,iftheintentionistoassesscountryin-dicatorsincludingtheirglobalimpact,ortoconsiderbackringeffects,suchasGHGemissionselsewhereduetoimportedproductsorimmigrationandpovertyelsewhere,considerationofthisaspectbecomesinevitable.
Thus,thethirdstage(long-term)createsavisionofhowasustainablesocietywouldlooklikewithbasicwellbeingsatised,ahigherlevelofsubjectivewell-being,andaglobaleconomythatdevelopswithinthelimitsoftheplanet.
Fig.
2illustratestheinteractionsofeconomic,environmentalandsocialaspects,consideringthatsustainabilityisadynamictarget.
5.
ConcludingremarksAllattemptstomeasureprogresshaveattractedcriticismregardingcertainvaluationtechniques,limitationsandscope.
Consequently,thereisaneedforaglobaldialogueandconsensusontheseissues,andtherearestillsomequestionsthatneedhelpfromtheacademic,socialandpoliticalcommunitiestobeanswered.
WhatindicatorsmaybeusedtoevaluateprogresstowardsSDTheconventionaluseofthetermprogresscomprisesnotionsofeconomicandsocialdevelopment.
However,overtime,thetermprogresshasadaptedtoreectneeds,andsohaveitsmeasurement.
Incircumstancesinwhichprogress,welfareandwellbeingareintimatelyboundtotheSD,itisalsoatimetoponderontheuseofbiophysicalindicatorstoestimatethisprogressandguidehumansocietiestoSDwithinthelimitsoftheplanet.
WhowillselectthoseindicatorsThevariousproposedindexesreviewedwerenotexpectedtobeconsistentasexpertsdevotedtobuildingthemcomefromquitedifferentsectors(academic,governmental,business,non-governmental,etc.
)andhavedifferentexpertise.
Specialists,despitetheirspecicexpertiseintheirownarea,mayfeelalackofsureness,condenceorknowledgewhenforminganopinionondiversesubjects,andeventuallypersonaljudgmentisadopted.
Theirweightingforenvironmental,economicorsocialindicators,mayincludejudgmentsheldwithoutscienticevidenceandmaythreatentheobjectivenessoftheanalysis(Giannettietal.
,2009).
Itisclearthattheindicatorsmustbetheoutcomeofextensivestudies,handledbymultidisciplinarygroupsofspecialistsandscientists,governmentalagencies,companiesandnonprotorga-nizations,whounderstandtheneedformoreefcientandadvancedmetricsforsizeupprogressalliedtowell-being,withintheplanet'slimits.
Thechallengerestsonhowbuildingameasuredelimitingwhethersocietiesareprogressing,onwhatshouldbecovered,whatcouldbeexcluded,tosetthestandards,andhowincorporatesocietalvaluesintoastandard.
Thisworkshouldstartwithintheacademiccommunitytoassureareliablescienticbasisandtherigorfordatacollectionandtreatment.
5.
1.
TowhomthoseindicatorsareofinterestSomesuggestionsarebasedonthenotionthat,providedthecomplexityoftheproblemsdefyinghumanity,auniqueindicatorwillnotbesatisfactory,andthatabroadsetofcombinedindicatorsmaybemostusefulatprovidingknowledgeguidingtobetterpoliciesanddecisionmaking.
Though,thisapproachisnotonlymoreconfusingtounderstandbytheoverallpublic,butalsofacil-itatesprejudicedorinuencedinterpretationsdrivenbyinterestsinparticularareas.
Ontheotherhand,onenumberindicatorsmayconcealsignicantaspectsandaresimplytobemistreated,suchasGDP.
Policydecisionsbasedonmacro-levelchecksmaybeworth-less,anddifferentindicatorsmusthelpnationsdecidingifau-thoritiesaredeliveringtheservicesfortheprosperitypeopleareenvisioning.
Thus,itseemsreasonablethataproperindicatormaybecomposedbyasetofindicatorsforpolicymakinguse,whichcanbecombinedinasinglenumberfordisclosuretothegeneralpublic.
HowwilltheybemeasuredThesearchforanalternativetoGDPisnotdone,andconceptualanddata-gatheringdifcultiesstillwaittoberesolved.
Theshifttoreliablemeasuresofprogressmaybedelayedbycontinuingdebatebyindicatorexperts,seekingforthesuitablemeasureofprogress.
Though,sinceprogressmeasuresareanindispensableconnectionbetweentheeconomyandthecountries'policiesinstitution,aproposalthatcanassureintangiblevariablesassociatedtoprogressandwellbeingwillnotbeoverlooked.
Accuratemeasurementsofthesevariablesareessentialtotheformulationofadequatepolicies.
Thebondbetweenpolicyandprogressobligatesthemonitoringofthreefundamentalspheres:resources,infrastructure,andtheenvironment,whichmustprovideusefulandreadableinformationtodecideaboutalternativepolicyoptions.
Sizeandpurposesarecertainlycriticaltobedened.
Thesustainablecapacityofasocialsystemisassociatedtobiophysicalindicatorsqualiedtoestimatethecapacityofecosystemstorestorematerialsandassimilateemissions.
Theindicatormustbequaliedtoxboththegreatestsustainablesizeandglobalfairnessintermsofresourceusage.
Biophysicalindicatorsmustassistdecidingonthemaximumsizeoftheeconomywhilesocialindicatorsmayhelpdeterminetheminimumneedtobeprovided.
Thisapproachmayhelpmankindtoenvisionwhatprogressmightbeinaneconomythatmergedper-sonalwellbeing,equalityandlowmaterialwastage.
WhatcanbedonewithinthepossibilityoftheexistingaccountsThecontinuedmistreatmentofGDPasameasureofwellbeingnecessitatesanurgent,forceful,andenduringactiontoadjusttheindicatorsthatdecisionmakersareusingtoguidepoliciesandevaluateprogress.
Asthisreviewshows,authorshavebeentryingtoincludedifferentdimensionsintocohesiveframeworks,butcurrentapproachesstilltendtounderemphasizeoroveremphasizesomecontributionstotheprogress.
Allindicatorsarelimitedesti-mates.
Nonecanactuallymeasureallsignicantaspectsofeco-nomic,social,andenvironmentalwell-being.
Thereisaneedforagreementondevelopingindicatorstoestablishpolicies,toguidedecisions,andmeasureprogress.
Thiscomprehensivereviewshowsthatifmankindisconcernedwithstrongsustainability,thenindicatorsmeasuredonlyinFig.
2.
Interactionsamongsocial,economicandenvironmentalaspectswithinthestrongsustainabilityframeworkthroughtime.
B.
F.
Giannettietal.
/JournalofCleanerProduction87(2015)11e2522monetaryorsocialtermsarequitelimited.
However,despiterestrictedtotheweakorthemediumsustainabilitymodel,theseindexes(greenornot)representamomentouscounterbalancetoGDPinthemeasurementofprogress.
Themeasurementofnaturalcapitalusageanddepreciationisamajorproblem,andbiophysicalindicatorsaretheonlyonesthatcanbeassociatedtoastrongsustainabilitymodel,andmustbeincluded/confrontedtoanyprogressevaluation.
Nevertheless,noneofthemeasuresdiscussedinthispaperseemstoaccomplishtoassesstheprogresstowardssustainabilityaddressingeco-systemfunctionalityandensuringsustainableso-cietaldevelopment.
Thetremendousamountofenvironmental,socialandeconomicissuesformulateproblemsthatnoneofthealreadyproposedmeasurescanundertakeindependentlyinanadequatemanner.
Theidealindex(es)shouldprovideacompletedescriptionofhowtheeconomicsystemtswithinandenviron-mentalsystemswhileattendsthesocialdemands.
Thus,becausenosinglemeasurecancoverthefullrangeofperspectives,theuse/combinationofdifferentapproachesshouldbethesubjectoffutureresearch.
AcknowledgmentsTheauthorsthankthenancialsupportfromVice-ReitoriadePosGradua~aoePesquisaofPaulistaUniversity.
SpecialthanksareaddressedtoDr.
BrunoS.
SilvestrefromtheFacultyofBusinessandEconomicsoftheUniversityofWinnipeg,forhisvaluablecom-mentsandsuggestions.
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