Measuring Sustainable Economic Wellbeing

1
Measuring Sustainable Economic Wellbeing

• Craig Bickerton
• Principal Economist
• SCPNet Annual Conference 4th March 2008

2
Why measure economic wellbeing?

• gross national product measures neither our wit
  nor our courage, neither our wisdom nor our
  learning, neither our compassion nor our devotion
  to country. It measures everything, in short,
  except that which makes life worthwhile...
• Robert F Kennedy, 18th March 1968

3
Strong GDP growth
4
Much better off
5
And still no happier?
6
RES Performance Management Framework
7
Constructing the R-ISEW

• Regional ISEW is a monetarised indicator of
  economic well-being and quality of life
  essentially a macro-level cost-benefit analysis.
• Starts with the economic benefits derived from
  consumer expenditure.
• Adjustments for social benefits are added that
  are not accounted for in personal consumption
  figures e.g. domestic and voluntary labour.
• Social costs are deducted such as expenditures
  that defend our quality of life rather than
  enhance it e.g. some health expenditure.
• Estimates of environmental costs are then
  deducted e.g. pollution and resource depletion.
• These costs benefits are based on calculating
  financial estimates of 24 different domains and
  draw on at least 50 different official data
  sources.

8
Components of the R-ISEW
9
R-ISEW for East Midlands
10
R-ISEW for East Midlands
11
R-ISEW for East Midlands
12
R-ISEW for East Midlands
13
R-ISEW for East Midlands
14
R-ISEW for East Midlands
15
R-ISEW for East Midlands
16
R-ISEW for East Midlands
17
Regional Index of Sustainable Economic Wellbeing
and GVA (/capita)
18
R-ISEW English Regions