Following Arrow et al. (2003), this paper considers green national accounting when population is changing and instantaneous well-being depends not only on per capita consumption, but also population size. It is shown that welfare improvement can be indicated by an expanded “genuine savings indicator”, which also takes into account the total value of population growth, or by an expanded measure of real NNP growth. Practical ways of approximating these measured are discussed. By assuming constant returns to scale, the measures can be related to the value of per capita stock changes and per capita NNP growth, using a result due to Arrow et al. (2003). The result are compared to those arising when instantaneous well-being depends only on per capita consumption, and not on population size.
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Paper provided by Oslo University, Department of Economics in its series Memorandum with number
06/2003.
Find related papers by JEL classification: D60 - Microeconomics - - Welfare Economics - - - General D90 - Microeconomics - - Intertemporal Choice and Growth - - - General O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
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