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An index for sustainable development

Author

Listed:
  • Enrico Casadio Tarabusi

    (Università degli Studi di Roma "La Sapienza", Dipartimento di Matematica "G. Castelnuovo", Roma (Italy))

  • Paolo Palazzi

    (Università degli Studi di Roma "La Sapienza", Dipartimento di Scienze Economiche, Roma (Italy))

Abstract

As a possible improvement to the United Nations' Human Development Index (HDI), we propose including in the set of individual variables some of an environmental or social nature. Thus, by rescaling all the variables non-linearly it is possible to mitigate the effect of outliers and synthesize by principal components, or alternatively by a different averaging method that takes sustainability into account and penalizes unbalances among different aspects of development. Both methods are easy to implement and calibrate. The ensuing effect on the ranking of world countries is compared to the HDI ranking.

Suggested Citation

  • Enrico Casadio Tarabusi & Paolo Palazzi, 2004. "An index for sustainable development," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 57(229), pages 185-206.
  • Handle: RePEc:psl:bnlaqr:2004:25
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    File URL: http://ojs.uniroma1.it/index.php/PSLQuarterlyReview/article/view/9827/9712
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    References listed on IDEAS

    as
    1. Satya R. Chakravarty, 2003. "A Generalized Human Development Index," Review of Development Economics, Wiley Blackwell, vol. 7(1), pages 99-114, February.
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    More about this item

    Keywords

    Development; Sustainability;

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies 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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