The Index of Sustainable Economic Welfare (ISEW) is an economic indicator intended to replace the Gross Domestic Product, which is the main macroeconomic indicator of System of National Accounts (SNA). Rather than simply adding together all expenditures like the gross domestic product, consumer expenditure is balanced by such factors as income distribution and cost associated with pollution and other unsustainable costs. It is similar to the Genuine Progress Indicator (GPI).
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
Read more about Index Of Sustainable Economic Welfare: History, Trend of ISEW in The USA, Other Countries To Adopt ISEW, Progress of The Finnish ISEW
Famous quotes containing the words index, economic and/or welfare:
“Exile as a mode of genius no longer exists; in place of Joyce we have the fragments of work appearing in Index on Censorship.”
—Nadine Gordimer (b. 1923)
“Society’s double behavioral standard for women and for men is, in fact, a more effective deterrent than economic discrimination because it is more insidious, less tangible. Economic disadvantages involve ascertainable amounts, but the very nature of societal value judgments makes them harder to define, their effects harder to relate.”
—Anne Tucker (b. 1945)
“That doctrine [of peace at any price] has done more mischief than any I can well recall that have been afloat in this country. It has occasioned more wars than any of the most ruthless conquerors. It has disturbed and nearly destroyed that political equilibrium so necessary to the liberties and the welfare of the world.”
—Benjamin Disraeli (1804–1881)