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Sustainability Indicators - the Boundaries and Alternatives of GDP

Author

Listed:
  • Csaba Kandracs

    (Magyar Nemzeti Bank)

  • Renato Ritter

    (Magyar Nemzeti Bank)

Abstract

To quantify economic performance, 'gross domestic product' - a measure created in the 1930s - is used worldwide. The indicator is suitable for measuring the performance of an economy and the welfare of individuals at a given point in time, but its capabilities are limited. The well-being of people, the impact of the environmental damage caused by production and the sustainability of economic performance are all issues that fall outside the scope of the metric. Since the 1970s, there has been a debate about the shortcomings of this indicator and its possible alternatives. Joining the dialogue, our goal was to present the principles of sustainability, to give an overview of the alternative indicators considered to be more relevant in Hungary and abroad, and to present the new sustainability indicator of the Hungarian central bank.

Suggested Citation

  • Csaba Kandracs & Renato Ritter, 2024. "Sustainability Indicators - the Boundaries and Alternatives of GDP," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 23(2), pages 31-55.
    • Handle: RePEc:mnb:finrev:v:23:y:2024:i:2:p:31-55
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    References listed on IDEAS

    as
    1. Nourry, Myriam, 2008. "Measuring sustainable development: Some empirical evidence for France from eight alternative indicators," Ecological Economics, Elsevier, vol. 67(3), pages 441-456, October.
    2. Arunima Malik & Jun Lan, 2016. "The role of outsourcing in driving global carbon emissions," Economic Systems Research, Taylor & Francis Journals, vol. 28(2), pages 168-182, June.
    3. Pulselli, Federico M. & Bravi, Mirko & Tiezzi, Enzo, 2012. "Application and use of the ISEW for assessing the sustainability of a regional system: A case study in Italy," Journal of Economic Behavior & Organization, Elsevier, vol. 81(3), pages 766-778.
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    More about this item

    Keywords

    sustainability principles; GDP; sustainability indicators;
    All these keywords.

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth

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