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The National and Regional Welfare Index (NWI/RWI): Redefining Progress in Germany

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  • Held, Benjamin
  • Rodenhäuser, Dorothee
  • Diefenbacher, Hans
  • Zieschank, Roland

Abstract

In recent years, the public discussion on welfare measurement ‘beyond GDP’ has considerably gained momentum in Germany. Among other developments, a growing political interest in the National Welfare Index (NWI) and its regional adaptation (Regional Welfare Index, RWI) points to the possibility of change. The NWI was created in 2009 with support from the Federal Ministry of Environment to improve sustainability and welfare accounting in Germany at the federal level, by developing a methodology based on the Index of Sustainable Economic Welfare (ISEW) and the Genuine Progress Indicator (GPI). In response to a demand by political actors, it was adapted for the state level in 2011. Results both on the national and the regional level show striking divergences between NWI/RWI and GDP, but also between different German states. Challenges remain with regard to data availability, methodology and political adoption. However, there is growing recognition of the NWI/RWI as a serious alternative and support for the improvement of the data necessary for its calculation. Drawing on our experience, we discuss some theses on conditions that may favour or impede the adoption of alternative welfare measures.

Suggested Citation

  • Held, Benjamin & Rodenhäuser, Dorothee & Diefenbacher, Hans & Zieschank, Roland, 2018. "The National and Regional Welfare Index (NWI/RWI): Redefining Progress in Germany," Ecological Economics, Elsevier, vol. 145(C), pages 391-400.
    • Handle: RePEc:eee:ecolec:v:145:y:2018:i:c:p:391-400
    DOI: 10.1016/j.ecolecon.2017.11.026
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    Cited by:

    1. Jonas Van der Slycken & Brent Bleys, 2020. "Cost-shifting Versus “Full” Accountability: Dealing with Cross-time and Cross-boundary Issues in the ISEW and GPI. An application to Belgium," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 20/1003, Ghent University, Faculty of Economics and Business Administration.
    2. Rui Cao & Yanling Xiao & Fengxue Yin, 2023. "Spatio-Temporal Evolution of High-Quality Development and the Impact of Carbon Emissions Trading Schemes," Sustainability, MDPI, vol. 15(4), pages 1-18, February.
    3. Jonas Slycken & Brent Bleys, 2023. "Towards ISEW and GPI 2.0: Dealing with Cross-Time and Cross-Boundary Issues in a Case Study for Belgium," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 168(1), pages 557-583, August.
    4. Van der Slycken, Jonas & Bleys, Brent, 2020. "A Conceptual Exploration and Critical Inquiry into the Theoretical Foundation(s) of Economic Welfare Measures," Ecological Economics, Elsevier, vol. 176(C).
    5. Jonas Van der Slycken & Brent Bleys, 2021. "Towards ISEW and GPI 2.0, part I: developing two alternative measures of economic welfare with distinct time and boundary perspectives for Belgium," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 21/1026, Ghent University, Faculty of Economics and Business Administration.
    6. Zhang, Junlai & Prettner, Klaus & Chen, Simiao & Bloom, David E., 2023. "Beyond GDP: Using healthy lifetime income to trace well-being over time with estimates for 193 countries," Social Science & Medicine, Elsevier, vol. 320(C).
    7. Dingqing Wang & Enqi Zhang & Hongwei Liao, 2022. "Does Fiscal Decentralization Affect Regional High-Quality Development by Changing Peoples’ Livelihood Expenditure Preferences: Provincial Evidence from China," Land, MDPI, vol. 11(9), pages 1-20, August.
    8. Daniel Francisco Pais & Tiago Lopes Afonso & Ant nio Cardoso Marques & Jos A Fuinhas, 2019. "Are Economic Growth and Sustainable Development Converging? Evidence from the Comparable Genuine Progress Indicator for Organisation for Economic Co-operation and Development Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 9(4), pages 202-213.
    9. Xuanzhi Yang & Zhaofang Zhang & Wei Luo & Zhen Tang & Xin Gao & Zhongchi Wan & Xin Zhang, 2019. "The Impact of Government Role on High-Quality Innovation Development in Mainland China," Sustainability, MDPI, vol. 11(20), pages 1-19, October.
    10. Lazarus, Elias & Brown, Clair, 2022. "Improving the genuine progress indicator to measure comparable net welfare: U.S. and California, 1995–2017," Ecological Economics, Elsevier, vol. 202(C).
    11. Jonas Van der Slycken & Brent Bleys, 2021. "Towards ISEW and GPI 2.0, part II: Is Europe faring well with growth? Evidence from a welfare comparison in the EU-15 from 1995 to 2018," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 21/1027, Ghent University, Faculty of Economics and Business Administration.
    12. Rugani, Benedetto & Marvuglia, Antonino & Pulselli, Federico Maria, 2018. "Predicting Sustainable Economic Welfare – Analysis and perspectives for Luxembourg based on energy policy scenarios," Technological Forecasting and Social Change, Elsevier, vol. 137(C), pages 288-303.
    13. Wang, Dingqing & Liao, Hongwei & Liu, Aiguo & Li, Dongdong, 2023. "Natural resource saving effects of data factor marketization: Implications for green recovery," Resources Policy, Elsevier, vol. 85(PA).
    14. Guowei Wang & Dingqing Wang & Liang Zhang, 2023. "Assessing the Impact of Government Behavior on Regional High-Quality Development: A Case of Fiscal Expenditures on People’s Livelihoods in China," Land, MDPI, vol. 12(10), pages 1-23, October.

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