Index Of Sustainable Economic Welfare Research Articles

Subjective assessment of women's economic welfare in public sector organizations of Mardan, Northern Pakistan

PurposeThe measurement of women's economic welfare and exploring its underlying factors have been undervalued in the context of Khyber Pakhtunkhwa, Pakistan. This study addressed this gap by focusing on assessing women's subjective economic welfare and its socioeconomic and cultural determinants in the education and health sectors within Mardan, Northern Pakistan.Design/methodology/approachThe study used stratified random sampling techniques for the selection of sample respondents and collected data through a well-structured questionnaire. To measure women’s economic welfare, the study utilizes Lorenz curves, the Gini index, the Sen Social Welfare function and an individual's gross monthly income. Furthermore, the ordinary least squares method was utilized to analyze the determinants of economic welfare.FindingsThe findings show greater income inequality and a lower welfare level for women in the education sector compared to the health sector. Likewise, the study identifies several key determinants, such as age, educational qualification, job experience, respect for working women, outside and work-place problems and the suffering of family members of working women for their economic well-being.Originality/valueThis study makes valuable contributions to the literature by focusing on the cultural perspective of Pakhtun women in Mardan and providing a context-specific understanding of subjective economic welfare. Additionally, the authors collected first-hand data, which gave an original outlook on working women's current economic welfare level. Furthermore, this study undertakes a comparative analysis of working women's welfare in the health and education sectors. This comparison offers a more accurate portrayal of the challenges and opportunities specific to these occupations.Peer reviewThe peer-review history for this article is available at: https://publons.com/publon/10.1108/IJSE-04-2023-0246

Is Europe faring well with growth? Evidence from a welfare comparison in the EU-15 (1995–2018)

This paper is the first to calculate welfare, measured by the Index of Sustainable Economic Welfare (ISEW), for the EU-15 countries in a standardized and comparable way. This paper does so by building on a case study for Belgium by Van der Slycken and Bleys (2023) that puts forward a “2.0 methodology” with two distinct ISEWs that deal with cross-time and cross-boundary issues. Both welfare and GDP per capita improved in the EU-15 between 1995 and 2018. Yet, there is an important divergence between welfare and GDP: over time experiential welfare per capita and the per capita benefits and costs of present activities improved by respectively 10,5% and 13,4%, which is less than one third and half of the growth in GDP per capita that grew by 32,4%. These welfare trends are mainly driven by individual consumption growth, the shadow economy and welfare losses from income inequality, which compensated about half of the welfare gains of the former two categories. The gap between welfare and GDP diverged especially after the financial crisis when welfare started stagnating. At the end of the studied period, the EU-15 had already recovered from the financial crisis from a GDP perspective, but not from a welfare view. Since welfare in 2018 was less than 2% lower than the period-maximum, there is no conclusive evidence in favor of the threshold hypothesis at the level of the EU-15. However, the fact that welfare levels in nine countries are more than 5% lower than their peak values signals a clear threshold for these countries. Yet, welfare can be increased beyond previous peaks with postgrowth policies that focus on social and ecological welfare.

National Quality and Sustainable Development: An Empirical Analysis Based on China’s Provincial Panel Data

Based on panel data of Chinese provinces from 2011 to 2020, this paper presents empirical research on the quantitative relationship between China’s national quality and sustainable development. Moreover, this research is implemented under the index system of national quality competitiveness. Firstly, a system for assessing national quality level is established, and the factor analysis method is applied to comprehensively analyze each province’s national quality; this produces a national quality score for each province. Secondly, an Index of Sustainable Economic Welfare (ISEW) and calculation methods are created. Thirdly, the Pearson Correlation Coefficient is employed to explore the relationship between the national quality of Chinese provinces and the sustainability of their economic development. Finally, the test of Granger causality (panel data) is applied to further analyze the interplay between national quality indexes and sustainable economic development. As the research results indicate, national quality can comprehensively impact sustainable economic development at any economic level, as well as its sustainable capability. National quality can still comprehensively affect the sustainable development of the economy. Nevertheless, sustainable economic growth does not affect all elements of national quality, especially at the level of morality. Additionally, the positive influence of sustainable economic development on national quality is limited and lags behind. Based on the results of our empirical analysis, several policy recommendations are given to improve China’s national quality and sustainable economic development.

Long-run effects of human development and public governance on economic welfare: New evidence from transition economies

The study attempts to gauge the impact of human development and public governance quality on economic welfare in the long term. The basic proposal of the analysis is that economic growth and/or development cannot be the measurement of the value of economic performance. For this reason, the Economic Prosperity Index, developed by the “Legatum Institute” is the dependent variable of the linear logarithmic model estimated in the paper. Besides, the measurement of economic welfare, (public) governance quality, which neoclassical economics ignored for a certain period, is considered an important input to human development. By taking these two variables into the research center, the study sights the rise in the prosperity (welfare) of 31 transition economies that achieved intense development after the 2000s from 2007 to 2020. Transition economies are selected owing to the rapid development and strong welfare effects they have reached with the millennium. So, the main hypothesis of the research is that transition economies have high human development and good governance that creates economic prosperity. By applying this research question, cross-sectional dependence and slope homogeneity tests, unit root tests, and co-integration tests, the author has conducted the lag length selection before the long-run relationship. Comprehensive analysis findings reveal that both indicators enhance economic prosperity by positively affecting them in the long run and that some of the deviations are improved.

Revisiting and evaluation of the index of sustainable economic welfare based on artificial intelligence: data from 30 Chinese provinces from 2003 to 2019

Revisiting and evaluation of the index of sustainable economic welfare based on artificial intelligence: data from 30 Chinese provinces from 2003 to 2019

Choquet integral‐based measures of economic welfare and species diversity

Measures of diversity, spread and inequality can be important indicators in domains as diverse as ecology, economics and health. One of the key characteristics of such indices is the Pigou–Dalton (P-D) principle, also known as the principle of progressive transfers, whereby proportional redistribution from larger to smaller arguments should increase (or decrease, depending on the context) the overall measure of social or economic welfare, diversity and so on. Previous studies have identified the ordered weighted averaging operators as being appropriate for welfare measurement, subject to conditions on the weighting vectors. We propose the Choquet integral, defined with respect to a capacity or fuzzy measure, as a candidate for defining nonsymmetric measures of welfare. This allows for importance and interaction to be modelled between inputs while still satisfying the P-D principle. We extend the buoyancy concept to fuzzy measures and characterise the resulting classes of buoyant and antibuoyant fuzzy measures. We then turn to the problem of optimisation of the Choquet integral subject to linear constraints, which in the case of antibuoyant fuzzy measures permits an efficient linear programming solution.

An estimate of the Genuine Progress Indicator for Iceland, 2000–2019

Target 19 of the United Nations' Sustainable Development Goal 17 calls for the use of alternative measures of economic welfare in addition to Gross Domestic Product (GDP). The Genuine Progress Indicator (GPI) is an example of such a measure, including various non-market benefits and environmental and social costs unaccounted for in GDP. This study presents the results from the first estimate of the GPI for Iceland over the period 2000–2019. Iceland represents an interesting case study given its remoteness, environmental vulnerability, natural resource dependency, and fluctuating economic performance in recent years, which has featured a banking collapse and tourism-fuelled resurgence. The study finds that Iceland's GPI was equal to between 2.41 and 3.05 times the value of national GDP. Statistics for both GDP and the GPI peaked in 2019 at 2,970,076 (USD M 24,237) and 7,163,300 million ISK (USD M 58,443), respectively. Mean annual rates of per capita expansion for both GDP and the GPI were 2.1% and 0.6%, respectively. Despite the scale of the Icelandic GPI, the study also revealed non-negligible values for environmental and social costs which, in aggregate, were equal to between 17.8% and 25.4% of the value of consumption.

Does psychological well-being mediate economic well-being? short-term evidence from a multifaceted program in the Philippines

ABSTRACT Can changes in psychological well-being lead to changes in economic well-being? Across many settings, the view that inexpensive psychological interventions can lead to meaningful change in economic well-being has become popular. Examining data from participants of a multifaceted program in the Philippines we find that program participants experience (i) positive changes in income and expenditures, (ii) relatively large changes in measures of psychological well-being, but that (iii) these changes in psychological well-being do not mediate changes in economic well-being. This suggests, at least in the short-term, that changes in psychological attributes may have small effects on measures of economic well-being.

An appraisal of interlinkages between macro-economic indicators of economic well-being and the sustainable development goals

Recognising the well-known limitations of economic growth as a litmus test of progress and the call by Target 19 of Sustainable Development Goal (SDG) 17 to “develop measurements on progress on sustainable development that complement gross domestic product”, this paper advances understanding of the linkages between alternative measures of economic well-being, the well-being economy and the SDGs. A conceptual model is presented, linking four capital assets to well-being goals and domains, which are connected to related SDGs. An assessment is conducted on the extent to which Gross Domestic Product and five alternative indicators of economic well-being (Environmentally Adjusted Net Domestic Product, Measure of Economic Welfare, Genuine Savings, Genuine Progress Indicator and Inclusive Wealth Index) align with (a) the dimensions of economic well-being, and (b) various environmental, economic, social and institutional targets set by the SDGs. The Genuine Progress Indicator (GPI) is found to be the most comprehensive in coverage, accounting for market-based welfare, services from essential capital, and various environmental and social costs, and linking directly to targets in fourteen of the seventeen SDGs. The paper discusses how greater use of alternative measures of economic well-being by policymakers can encourage transitions to economies which prioritise well-being and desirability objectives.

Andrew Sharpe: Pioneer in the Measurement of Economic Well-Being

Andrew Sharpe: Pioneer in the Measurement of Economic Well-Being

ENERGY CONSUMPTION AND SUSTAINABLE ECONOMIC WELFARE: NEW EVIDENCE OF ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES

This paper examines the relationship between energy consumption and sustainable economic welfare in Organization of Petroleum Exporting Countries. Initially, the index of sustainable economic welfare (ISEW) is calculated followed by an investigation of the relationship between energy consumption and sustainable economic welfare in these countries. The calculation of the ISEW reveals the most important beneficial component and the most important cost component of ISEW is adjusted personal consumption and energy depletion, respectively. The estimated results based on the Westerlund (2007) test and considering cross-sectional dependence indicate that there is a long run relationship between energy consumption and sustainable economic welfare. Granger’s causality test results indicated a unidirectional causality running from sustainable economic welfare to energy consumption. This result has implications for energy and environmental policy makers; energy conservation policy will be useful in improving the quality of environment and it does not have adverse impact on their sustainable economic welfare.

The impact of entrepreneurship on economic, social and environmental welfare and its determinants: a systematic review

This paper presents a systematic review of (a) the impact of entrepreneurship on economic, social and environmental welfare and (b) the factors determining this impact. Research over the past 25 years shows that entrepreneurship is one cause of macroeconomic development, but that the relationship between entrepreneurship and welfare is very complex. The literature emphasizes that the generally positive impact of entrepreneurship depends on a variety of associated determinants which affect the degree of this impact. This paper seeks to contribute to the literature in three ways. First, it updates and extends existing literature reviews with the recently emerged research stream on developing countries, and incorporates studies analysing not only the impact of entrepreneurship on economic growth and welfare but also on social and environmental welfare. Second, it identifies and structures the current knowledge on the determinants of this impact. And third, it provides a roadmap for future research which targets the shortcomings of the existing empirical literature on this topic. The review of 102 publications reveals that the literature generally lacks research which (a) goes beyond the common measures of economic welfare, (b) examines the long-term impact of entrepreneurship and (c) focuses on emerging and developing countries. Regarding the determinants of the impact of entrepreneurship, the results highlight the need for empirical research which addresses both already investigated determinants which require more attention (e.g. survival, internationalisation, qualifications) and those which are currently only suspected of shaping the impact of entrepreneurship (e.g. firm performance, the entrepreneur’s socio-cultural background and motivations).

A Conceptual Exploration and Critical Inquiry into the Theoretical Foundation(s) of Economic Welfare Measures

Economic welfare measures (EWM) such as the ISEW and the GPI are often argued to lack a sound theoretical foundation. However, we observe that the initial EWM were jointly inspired by Hicksian and Fisherian income. Welfare's experiential nature is Fisherian-inspired, whereas seeing the consumption of community capital (e.g. the ecosystem) as a cost is Hicksian-inspired. As most scholars do not recognize this double theoretical foundation, two distinct welfare interpretations with different time and boundary dimensions are often conflated. EWM can be seen as either capturing the benefits and costs experienced, or as reflecting the benefits and costs of present economic activities (BCPA). The former interpretation excludes future costs, costs shifted abroad and capital changes as they are not experienced in the present, while the latter includes them. Recent developments reveal that EWM are converging toward the ex post established experiential Fisherian foundation formulated by Lawn (2003). Yet, this is not the only way forward as the BCPA-view offers an alternative to account for, for instance, the costs of present activities shifted abroad or to the future, whether they are experienced or not. To avoid inconsistencies, EWM's standardization would greatly benefit from making explicit in future studies which interpretation is taken.

The relevance of Index of Sustainable Economic Wellbeing. Case study of Ecuador

Abstract The gross domestic product is usually the indicator used to measure economic progress worldwide. However, GDP growth does not necessarily reflect the well-being of a nation, since there are cases of countries where there is economic growth measured by GDP; But, there is poverty, unemployment and inequality. For this reason, we Calculated the Index of Sustainable Economic Welfare (ISEW) using the information of Ecuador a Latin American developing country for the period 2001–2015. Additionally, we compared (ISEW) with the GDP as progress indicators, emphasizing the difference between welfare and economic growth. The results show that from the positive components, personal consumption is the one that contributes the most to the increase of ISEW, while the degradation of natural capital affects negatively, in a greater proportion, Ecuadorians welfare; the existence of the gap between the ISEW and the GDP is confirmed, so it’s deduced that welfare in Ecuador is overestimated, demanding analysis and institutional reform.

Global Climate Change Mitigation: Strategic Incentives

Central to global agreement on carbon emissions are strategic interactions amongst regions over abatement policy and the benefits to be shared. These are re-examined in this paper, in which benefits from mitigation stem from a meta-analysis that links carbon concentration with region-specific measures of economic welfare. Implementation costs are then drawn from a highly disaggregated model of global economic performance. Multiplayer games are then constructed, the results from which are sensitive to embodied temperature scenarios and discount rates but robustly reveal that the U.S. and China would be net gainers from unilateral implementation in net present value terms. The dominant strategy for all other countries is to free ride. Net gains to the three large economies are bolstered by universal adoption, which could be induced by affordable side payments. Yet the downside is that net gains to all regions are negative over two decades, rendering commitment to abatement politically difficult.

Consideraciones básicas para la aplicación de experimentos de elección discreta: una revisión

La necesidad de asignar un valor económico a los bienes y servicios ambientales derivó en el desarrollo de metodologías como los experimentos de elección discreta, que cobraron gran relevancia en los últimos años. La presente revisión se enfoca en mostrar los aspectos básicos por considerar para el uso empírico de este método en su proceso completo. Se incluyen el diseño experimental, la elaboración y aplicación de un cuestionario y una encuesta, análisis econométrico y las medidas de bienestar. Para ello, se hace una revisión bibliografía sobre los avances y aplicaciones de experimentos de elección en los últimos años; asimismo, se abordan y discuten los hallazgos sobre su confiabilidad y validez, así como los alcances y limitaciones de este método de preferencias declaradas. A pesar de los retos que enfrenta; por ejemplo, la complejidad de la tarea de elección y esfuerzo cognitivo por parte de los entrevistados, situación más evidente cuando se emplea en países en vías de desarrollo, es hoy en día el procedimiento preferido por los investigadores de la economía ambiental; ya que permite la descomposición del valor total del bien o servicio en el de sus atributos, y proporciona un enfoque más útil para la valoración económica, lo que resulta en mayores ventajas para los tomadores de decisiones en política ambiental.

An index of sustainable economic welfare for Romania

This paper has the objective to develop an Index of Sustainable Welfare for Romania from 1990 to 2017, in order to more clearly establish the status of the Romanian economy in terms of economic welfare. The results show that whilst gross domestic product (GDP) per capita increased significantly, the ISEW per capita grew at a much slower pace. The value of household labour contributes strongly to the growth of welfare, but income distribution, costs of climate change, cost of road accidents and cost of air pollution limit an improvement of population economic well-being. Our new valuation approach confirms the general conclusion of most authors on economic development that, during last decades, welfare has shown little improvement in spite of a growing GDP. Our conclusion is that the ISEW provides a useful alternative to indicators such as GDP despite subjected to its limitations and criticism.
 Keywords: Economic welfare, GDP, ISEW.

MEW és az ISEW alternatív gazdasági mutatók elméleti áttekintése

In our publication we focus on the economic well-being indicators that can be good substitutes or alternatives of the gross domestic product. After the brief overview of the often mentioned weaknesses and mistakes of GDP, we present the Measure of Economic Welfare (MEW) and the Index of Sustainable Economic Welfare (ISEW). We summarize that albeit there are more than enough indicators, none of them is so widely accepted as GDP. It is not clear yet which one(s) will replace it in its role. The study was created for the Economics Seminar of Kaposvár (KAKTUSZ) which is organized annually by the Kaposvár University. Another research team of the environmental economics session of KAKTUSZ 2016 undertakes to demonstrate other alternative economic indicators in the article titled "Theoretical overview of the GPI, the SNBI and the HDI alternative economic indicators" by Csuvár et al. (2018).

Hidden linkages between resources and economy: A “Beyond-GDP” approach using alternative welfare indicators

Taking GDP as the standard economic indicator for economic welfare, recent Resources-Economy studies indicate the “dematerialization” of the economy, the so-called decoupling effect. This conclusion seems to alleviate concerns over resource scarcity and limits to growth, and feeds optimism for green growth and sustainability prospects. However, the validity of GDP as the sole and unambiguous measure of the ultimate outcome of the economy has been severely disputed. There is nowadays increasing interest in broader welfare measurements that capture more aspects of economic output and hence constitute better approximations of well-being. The present paper provides an overview of the above discussion and sets out to explore the relevance of three alternative welfare indicators – the Human Development Index (HDI), the Index of Sustainable Economic Welfare (ISEW) and the Genuine Progress Indicator (GPI) – as a basis for evaluating the dependency of welfare and its major engine, the economy, on natural resources. Increasing welfare appears to require a disproportionate use of resources. Strong and increasing dependency on resources at the global level and in giant countries such as China and India may have serious implications for current sustainability policies and the United Nations Sustainable Development Goals.

Diversification as a Means of Achieving Sustainable Development Goal on Poverty Eradication: Evidence from Farm Households, Rural Nigeria

High incidence of poverty in sub Saharan Africa and other parts of developing countries has clearly shown that that a lot have to be done towards the accomplishment of sustainable development goal (SDG) of poverty eradication by the year 2030. The objective of this study is to examine the effect of diversification on poverty reduction among farm households in rural Nigeria with a view to proffer possible suggestions on how to achieve sustainable development goal on poverty eradication by 2030. The study used per capita consumption expenditure as a measure of economic wellbeing as well as poverty status. Data on the third wave of the Nigerian General Household Survey (GHS) with a nationally representative sample of 3,256 panel rural households conducted by the Nigerian Bureau of Statistics in collaboration with the World Bank in 2015/2016 was used for the study which was analysed using propensity score matching approach. The matching results revealed that diversification has a positive and significant effect on the household wellbeing irrespective of their poverty status. However, diversification contributes more to the wellbeing of the non-poor households than the poor ones. In the light of the foregoing, the study recommends that sustainable development policies seeking to address rural poverty should not only consider agricultural development. They should also consider enhancing the ability of poor rural households to diversify into high return non-farm activities as it supplements their earnings from agriculture and have positive significant effect on their wellbeing. Further, there is need to encourage rural banking scheme with the simple collateral requirement as well as promote cooperative societies, educational programmes, non-farm enterprise activities and community infrastructures.