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The usefulness of aggregate sustainability indicators for policy making: What do they say for Madagascar?

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Ollivier, TO

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Abstract

In this paper we compare the practical policy implications that can be derived from the calculation of three aggregate sustainability indicators for Madagascar. The chosen indicators are: the Adjusted Net Saving, the Genuine Progress Indicator, and the Ecological Footprint. Our results are twofold. First, these indicators provide very different messages regarding the sustainability of Madagascar’s recent development. The first one indicates a development path that is not sustainable, whereas the latter two do not indicate anything to be alarmed about. Second, they yield a set of widely diverse policy implications which we do not see as complementary. The Ecological Footprint provides policy recommendations that are too general for poor countries rich in natural resources, such as Madagascar. The Genuine Progress Indicator highlights several social issues but its interpretation in terms of sustainability remains ambiguous as it is a mix between a present welfare and a sustainability indicator. In the end, we consider that the Adjusted Net Saving provides the most consistent information to decision makers regarding the sustainability of Madagascar’s recent development path.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 16607.

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Date of creation: 15 Jul 2009
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Handle: RePEc:pra:mprapa:16607

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Related research
Keywords: Sustainable Development; Madagascar; Ecological Footprint; Adjusted Net Saving; Genuine Progress Indicator;

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Find related papers by JEL classification:
Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounting
Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

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  1. Clarke, Matthew & Lawn, Philip, 2008. "A policy analysis of Victoria's Genuine Progress Indictor," The Journal of Socio-Economics, Elsevier, vol. 37(2), pages 864-879, April. [Downloadable!] (restricted)
  2. Hartwick, John M, 1977. "Intergenerational Equity and the Investing of Rents from Exhaustible Resources," American Economic Review, American Economic Association, vol. 67(5), pages 972-74, December. [Downloadable!] (restricted)
    Other versions:
  3. Hanley, Nick & Moffatt, Ian & Faichney, Robin & Wilson, Mike, 1999. "Measuring sustainability: A time series of alternative indicators for Scotland," Ecological Economics, Elsevier, vol. 28(1), pages 55-73, January. [Downloadable!] (restricted)
  4. Hamilton, Kirk & Clemens, Michael, 1999. "Genuine Savings Rates in Developing Countries," World Bank Economic Review, Oxford University Press, vol. 13(2), pages 333-56, May.
  5. Hamilton, Kirk, 2005. "Testing genuine saving," Policy Research Working Paper Series 3577, The World Bank. [Downloadable!]
  6. Fiala, Nathan, 2008. "Measuring sustainability: Why the ecological footprint is bad economics and bad environmental science," Ecological Economics, Elsevier, vol. 67(4), pages 519-525, November. [Downloadable!] (restricted)
  7. William D. Nordhaus & James Tobin, 1972. "Is Growth Obsolete?," NBER Chapters, in: Economic Research: Retrospect and Prospect Vol 5: Economic Growth, pages 1-80 National Bureau of Economic Research, Inc. [Downloadable!]
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  8. Gnègnè, Yacouba, 2009. "Adjusted net saving and welfare change," Ecological Economics, Elsevier, vol. 68(4), pages 1127-1139, February. [Downloadable!] (restricted)
  9. Neumayer, Eric, 2004. "Sustainability and Well-being Indicators," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  10. Susana Ferreira & Kirk Hamilton & Jeffrey R. Vincent, 2008. "Comprehensive Wealth and Future Consumption: Accounting for Population Growth," World Bank Economic Review, Oxford University Press, vol. 22(2), pages 233-248, May. [Downloadable!] (restricted)
  11. 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. [Downloadable!] (restricted)
  12. Muradian, Roldan, 2001. "Ecological thresholds: a survey," Ecological Economics, Elsevier, vol. 38(1), pages 7-24, July. [Downloadable!] (restricted)
  13. Giles Atkinson & Kirk Hamilton, 2007. "Progress along the path: evolving issues in the measurement of genuine saving," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 37(1), pages 43-61, May. [Downloadable!] (restricted)
  14. Kirk Hamilton & Cees Withagen, 2007. "Savings growth and the path of utility," Canadian Journal of Economics, Canadian Economics Association, vol. 40(2), pages 703-713, May. [Downloadable!] (restricted)
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