The Genuine Progress Indicator 2006
A Tool for Sustainable Development
Dr. John Talberth, Clifford Cobb,
and Noah Slattery
O
GDP muscles through
Economy brushes off storms and expands by 3.8 percent in 3Q, beating estimates.
The U.S. economy shook off headwinds from hurricanes Katrina and Rita to grow at a faster-than
expected 3.8 percent annual rate in the third quarter, a Commerce Department report showed
Friday. (Reuters, 2005)
Evolution of the Genuine Progress Indicator Framework
What’s wrong with GDP as a measure of progress?
How the GPI attempts to correct these deficiencies
An Updated GPI Methodology
Column B – Personal Consumption
Column C – Income Distribution Index
Column D – Weighted Personal Consumption
Column E – Value of Household Work and Parenting
Column F – Value of Higher Education
Column G – Value of Volunteer Work
Column H – Services of Consumer Durables
Column I – Services of Highways and Streets
Column J – Cost of Crime
Column K – Loss of Leisure Time
Column L – Cost of Underemployment
Column M – Cost of Consumer Durables
Column N – Cost of Commuting
Column O – Cost of Household Pollution Abatement
Column P – Cost 0f Automobile Accidents
Column Q – Cost 0f Water Pollution
Column R – Cost 0f Air Pollution
Column S – Cost 0f Noise Pollution
Column T – Loss of Wetlands
Column U – Loss of Farmland
Column V – Loss of Primary Forests and Damage from Logging Roads
Column W – Depletion of Nonrenewable Energy Resources
Column X – Carbon Dioxide Emissions Damage
Column Y – Cost of Ozone Depletion
Column Z – Net Capital Investment
Column AA – Net Foreign Borrowing
Column AB – The Genuine Progress Indicator
Column AC – Per Capita GPI
Column AD – Per Capita GDP
Results and Implications
Using the GPI as a Guide to Public Policy
Concluding Thoughts and Future Refinements