It is widely recognised that GDP as conventionally measured does not reflect an economy’s impact on the environment and its consumption of natural resources. There have been various attempts to develop broader measures of economic performance via adjustments to conventional GDP (some of which also address non-environmental limitations of conventional GDP), for example:
- Measure of Economic Welfare (Nordhaus & Tobin 1972)
- “True NNP inclusive of natural resource stock diminution” (Hartwick 1990)
- Gross Sustainable Development Product (GSDP) (Global Community Assessment Centre)
- Genuine Progress Indicator (GPI) (eg Anielski 2001)
- Green GDP (a term whose precise content appears to be disputed (see eg Boyd 2006))
Is this just a proliferation of alternative measures, or is it possible to discern progress or convergence towards a best or most useful measure that adjusts GDP for environmental and resource impacts, or perhaps different best measures for different purposes?