Index of Sustainable Economic Welfare
Economic indicator / From Wikipedia, the free encyclopedia
Dear Wikiwand AI, let's keep it short by simply answering these key questions:
Can you list the top facts and stats about Index of Sustainable Economic Welfare?
Summarize this article for a 10 year old
The Index of Sustainable Economic Welfare (ISEW) is an economic indicator intended to replace the gross domestic product (GDP), which is the main macroeconomic indicator of System of National Accounts (SNA). Rather than simply adding together all expenditures like the GDP, consumer spending is balanced by such factors as income distribution and cost associated with pollution and other unsustainable costs. The calculation excludes defence expenditures and considers a wider range of harmful effects of economic growth.[1] It is similar to the genuine progress indicator (GPI).
This article may be unbalanced toward certain viewpoints. (May 2013) |
The Index of Sustainable Economic Welfare (ISEW) is roughly defined by the following formula:
ISEW = personal consumption
+ public non-defensive expenditures
- private defensive expenditures
+ capital formation
+ services from domestic labour
- costs of environmental degradation
- depreciation of natural capital