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Ecological inequality in assessing well-being: Some applications

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Author Info
Mariano Torras
Abstract

Claims to the inadequacy of GDP growth as an indicator of well-being improvement are widespread. Yet the notion of well-being is very broad, hence difficult to quantify, so alternative indexes (e.g., ISEW, GPI) may also be deficient. This article approaches well-being from a multi-dimensional perspective which, unlike earlier attempts to incorporate inequality and environmental variables, focuses especially on “ecological inequality,â€\x9D or inequality in the distribution of the social cost associated with resource depletion. A methodology for assessing well-being improvements is developed, one which includes an accounting for ecological inequality, and is applied to four countries: Brazil, Costa Rica, Indonesia, and the Philippines. The variability in the results strongly suggests that in addition to depending on the subjective perspective of the policymaker regarding the relative importance of the income growth realized by different population groups, well-being assessments depend critically on the existing ecological distribution. More research into quantifying ecological distribution is therefore warranted. Absent significant progress in this area, sensitivity analysis such as that conducted here may inform policy better than GDP or alternative well-being indexes or aggregates. Copyright Springer Science + Business Media, Inc. 2005

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File URL: http://hdl.handle.net/10.1007/s11077-005-9003-2
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Article provided by Springer in its journal Policy Sciences.

Volume (Year): 38 (2005)
Issue (Month): 4 (December)
Pages: 205-224
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Handle: RePEc:kap:policy:v:38:y:2005:i:4:p:205-224

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  1. J. Martinez-Alier, 1993. "Distributional Obstacles to International Environmental Policy: The Failures at Rio and Prospects after Rio," Environmental Values, White Horse Press, vol. 2(2), pages 97-114, May. [Downloadable!] (restricted)
  2. Harberger, Arnold C, 1984. "Basic Needs versus Distributional Weights in Social Cost-Benefit Analysis," Economic Development and Cultural Change, University of Chicago Press, vol. 32(3), pages 455-74, April.
  3. Max-Neef, Manfred, 1995. "Economic growth and quality of life: a threshold hypothesis," Ecological Economics, Elsevier, vol. 15(2), pages 115-118, November. [Downloadable!] (restricted)
  4. Barrera, Albino, 1997. "Degrees of Unmet Needs in the Superfluous Income Criterion," Review of Social Economy, Taylor and Francis Journals, vol. 55(4), pages 464-86, Winter.
  5. Martinez-Alier, Joan, 1995. "Distributional Issues in Ecological Economics," Review of Social Economy, Taylor and Francis Journals, vol. 53(4), pages 511-28, Winter.
  6. Young, Carlos Eduardo Frickmann & da Motta, Ronaldo Seroa, 1995. "Measuring sustainable income from mineral extraction in Brazil," Resources Policy, Elsevier, vol. 21(2), pages 113-125, June. [Downloadable!] (restricted)
  7. Boyce, James K., 1994. "Inequality as a cause of environmental degradation," Ecological Economics, Elsevier, vol. 11(3), pages 169-178, December. [Downloadable!] (restricted)
  8. Pearce, David & Hamilton, Kirk & Atkinson, Giles, 1996. "Measuring sustainable development: progress on indicators," Environment and Development Economics, Cambridge University Press, vol. 1(01), pages 85-101, February. [Downloadable!]
  9. Common, Mick & Perrings, Charles, 1992. "Towards an ecological economics of sustainability," Ecological Economics, Elsevier, vol. 6(1), pages 7-34, July. [Downloadable!] (restricted)
  10. Geir Asheim, 2002. "Green National Accounting for Welfare and Sustainability: A Taxonomy of Assumptions and Results," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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  11. James Boyce, 1994. "Inequality as a Cause of Environmental Degradation," Published Studies ps1, Political Economy Research Institute, University of Massachusetts at Amherst. [Downloadable!]
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