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The Real Net National Product in Sustainable Development


  • Haradhan Kumar Mohajan

    () (Premier University, Chittagong, Bangladesh)


This paper is related to social welfare and sustainability. The real NNP represents the maximized value of flow of goods and services that are produced by the productive assets of the society. It is important to investigate whether the concept of NNP can serve as an indicator of sustainability. In this paper an attempt has been taken to clarify this with theoretical calculations. The instantaneous increases in real NNP over time are an accurate indicator of true welfare improvements. The paper shows that welfare is increasing instantaneously over time if and only if real NNP is increasing instantaneously over time. It is also shown the relation between the Divisia index of real consumption prices and dynamic welfare evaluation. The paper emphasizes on optimal growth and growth without optimality, and is examined sustainability in these two cases.

Suggested Citation

  • Haradhan Kumar Mohajan, 2011. "The Real Net National Product in Sustainable Development," KASBIT Business Journals, Khadim Ali Shah Bukhari Institute of Technology (KASBIT), vol. 4, pages 89-103, December.
  • Handle: RePEc:ksb:journl:v:4:y:2011:p:89-103

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    References listed on IDEAS

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    13. John C. V. Pezzey, 2002. "One-sided Unsustainability Tests and NNP Measurement with Multiple Consumption Goods," Economics and Environment Network Working Papers 0208, Australian National University, Economics and Environment Network.
    14. Mohajan, Haradhan, 2010. "Green net national product for the sustainability and social welfare," MPRA Paper 50840, University Library of Munich, Germany, revised 18 Feb 2011.
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    Cited by:

    1. Mohajan, Haradhan & Deb, Suman & Rozario, Steve, 2011. "Environmental accounting and the roles of economics," MPRA Paper 50687, University Library of Munich, Germany, revised 25 Aug 2011.
    2. Haradhan Kumar Mohajan, 2011. "The NNP and Sustainability in Open Economy: Highlights on Recent World Economy and on Open Economy of Bangladesh," KASBIT Business Journals, Khadim Ali Shah Bukhari Institute of Technology (KASBIT), vol. 4, pages 32-47, December.

    More about this item


    Real NNP; Dynamic welfare; Social Welfare and Sustainability;

    JEL classification:

    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development


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