Green Economics and Management

Conclusion - Challenging the GDP

To conclude, we can first remember the reason why we have chosen to call our new indicator "sustainable index". We intended to link it clearly to the concept of sustainable development, which is supported by three pillars: economic, social and environmental. Creating a green indicator implied a particular focus on the last two ones to remain in the framework of green economics. "Challenging the GDP" seemed to be necessary.

However, it is not an easy task to carry out. On the one hand, we admit our model has some limits, since even the simpler version remains an ideal one and the allocation of the weights given to the components are quite subjective. Nevertheless, our sustainability indicator has a major advantage: it directly illustrates the progress achieved by the various countries, which the GDP does not do, for instance with the component we have imagined for the energy consumption. The simpler version of our new tool is based on measurable components, for which figures can be made available quite quickly. It seems that it also gives a more adequate picture of the relative ability of nations to combine economic, social and environmental aspects and thus of adaptation to a changing world. Actually it was aimed at helping governments in their decision-making.

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