Umwelt und Nachhaltige Entwicklung 3.1 The deficiencies of GDP related measures Clemens Bachmann Thomas Haid Siegfried Lindner.

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Presentation transcript:

Umwelt und Nachhaltige Entwicklung 3.1 The deficiencies of GDP related measures Clemens Bachmann Thomas Haid Siegfried Lindner

The GDP The GDP is the amount of all goods and services produced in one period, usually one year, in a particular geographic area, usually a country. There are three ways to calculate: the expenditure the production side the income side. All three methods should give the same result.

The components GDP (Y) =C+I+G+NX C (consumption) I (investment) G (government spending) NX (net exports)

From GDP to Personnel disposable income X-Z GDP Depreciation G NDPIndirect Taxes Personnel Income I National Income Personnel disposable income C

The circular flow concerning GDP monetary unit spend = monetary unit received by someone households are the proprietor of all factors of production, such as labor, capital, land and owner of businesses

GDP and National Welfare GDP ≠ Nationale Welfare GDP is not a measure of economic well-being. achievements that increase well being are not counted because they are no market activities. unpaid work, such as voluntary activities work in the private sphere domestic work

Potential and limits of GDP high and rising level of inequality depreciation of capital goods depletion of natural resources degradation of the environment

Other indicators besides GDP Genuine Progress Indicator Happy Planet Index Human Development Index (HDI) Extended Economic Indicators Environmental Performance Index Genuine Savings Ecological Footprint

Genuine Progress Indicator The GPI is used for green economics, sustainability, ecological economics, and more inclusive types of economics commonly known as welfare economics. GPI includes economic contributions of households volunteer work, crime, pollution and family breakdown GPI takes into account more than twenty aspects of our economic lives as the GDP.

Happy Planet Index The Happy Planet Index shows the relative efficiency with which nations convert the planet’s natural resources into long and happy lives for their citizens. First Index measure the environmental efficiency three separate indicators life expectancy life-satisfaction ecological footprint

Thank you for your attention !