Summary: Challenges & Solutions - Week 4 Efb Mcm
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1 Kubiszewski et al., 2013
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Nations need indictors that measure progress towards achieving what goals?
Economic, social and envionrmental goals. -
What is GDP (gross domestic product) a great measure for? And what has it mistakenly been used for?
To measure the economic aspect but it has been mistakenly used as a broader measure to measure welfare. -
Even though GDP was never designed to measure social or economic welfare, as what indicator is it most commonly used for today?
A country's overall performance. -
What are the biggest problems with GDP? List the 3
- Interprets every
expense aspositive and does not distinguish betweenwelfare enhancing andwelfare reducing activities. - Leaves out components that
enhance welfare but do notinvolve monetary transactions . - Does not
account for thedistribution of income amongindividuals
- Interprets every
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What is an alternative measure to the GDP? How many components does it hold?
GPI (Genuine ProcessIndicator ), it holds 24 different components. -
What does GPI measure?
Measures ofeconomic welfare generated byeconomic activity, in conjunction with other measures (environmental costs, crime, volunteering...). -
What is GPI not an indicator of?
Sustainability -
How does GPI better approximate sustainable economic welfare?
By separating activities that diminish welfare from those that enhance it. -
Should the measure of economic welfare be used alone?
No, in conjunction with other measures. -
1.1 Critiques of GPI
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What are the 5 critiques that have been taken up in the article for GPI?
- Uses
inappropriate valuation methods toestimate someGPI items - Assumes that
human-made capital and naturalcapital aresubstitutes - Includes some important
welfare-related items butoverlooks others, such as thebenefits ofpolitical freedom - Is
subjective in its choice of components to include Lacks a solidtheoretical basis.
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Topics related to Summary: Challenges & Solutions - Week 4 Efb Mcm
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Kubiszewski et al., 2013 - Critiques of GPI - Discussion
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Kubiszewski et al., 2013 - IPCC Report - Impacts Climate Change
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EMF, 2013 - The Limits of Linear Consumption
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EMF, 2013 - From linear to circular
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EMF, 2013 - Joyce & Paquin, 2016 - Layers of the TLBMC
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Raworth, 2018 - Doughnut Economy
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Lecture General
