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Macroeconomic Measures of ‘Sustainability’
Author(s) -
Hanley Nick
Publication year - 2000
Publication title -
journal of economic surveys
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.657
H-Index - 92
eISSN - 1467-6419
pISSN - 0950-0804
DOI - 10.1111/1467-6419.00102
Subject(s) - sustainability , economics , natural capital , stock (firearms) , sustainable development , economic indicator , econometrics , macroeconomics , public economics , engineering , political science , mechanical engineering , ecology , ecosystem , law , ecosystem services , biology
This paper reviews the policy need for indicators of ‘sustainable development’, and the impetus behind recent moves to establish official indicators. The range of indicators available from current economic theory is then examined. These measures may be divided into those based on flows and those based on stocks. Flow‐based measures are essentially attempts to adjust Net National Product to transform it into an indicator of sustainability. Stock‐based measures revolve around the concept of the natural and man‐made capital stocks. We also consider the idea of Safe Minimum Standards as a sustainability indicator. The paper concludes that no currently‐available single measure of sustainability is likely to be adequate.