Measuring Genuine Progress in State and Local Economies Jon Erickson Rubenstein School of Environment and Natural Resources, and the Environmental Program University of Vermont

The total value of all final goods and services produced in an economy in a one-year period. Household Firms (production Factor services Goods I n v e s t m e n t ( 3 ) P e r s o n alcons ump tio n ( 4 ) S a v i n g s ( 3 ) I m p o r t s ( 5 ) E x p o r t s ( 5 ) ( 2 )G o v e r n m e n t S p e n d i n g T a x e s ( 2 ) Government Financial markets Other countries W a g e s, r e n t s, i n t e r e s t, p r o f i t s ( 1 ) Gross Domestic Product

Source: J.R. McNeil, Something New Under the Sun, Table 1.1.

Source: J.R. McNeil, Something New Under the Sun, Table 1.3.

Source: J.R. McNeil, Something New Under the Sun, Table 1.2.

U.S. Real Gross Domestic Product, 1920–1998 Source: U.S. Department of Commerce, Historical Statistics of the United States, 1976; and Economic Report of the President, 1998, 1999.

Does GDP = Welfare?

The gross national product does not allow for the health of our children, the quality of their education, or the joy of their play. It does not include the beauty of our poetry or the strength of our marriages; the intelligence of our public debate or the integrity of our public officials. It measures neither our wit nor our courage; neither our wisdom nor our learning; neither our compassion nor our devotion to our country; it measures everything in short, except that which makes life worthwhile. ~Robert F. Kennedy, 1968

Another Measure of the 20 th Century Item Increase Factor 1890s-1990s Item Increase Factor 1890s – 1990s World population4Water use9 Urban proportion of...3Marine fish catch35 Total world urban pop.13Cattle population4 World economy14Pig population9 Industrial output40Horse population1.1 Energy use16Blue whales (S. Ocean) Coal production7Fin whale population0.03 Air pollution~5Bird and mammal species0.99 Carbon dioxide emiss.17Irrigated area5 Sulfur dioxide emissions13Forest area0.8 Lead emiss. to atmosph.~8Cropland2 Source: J.R. McNeil, Something New Under the Sun, Table 12.1.

Source: Edward Wolff, Top Heavy, 1996, New Series Households date pp ( ), “Recent Trends in Wealth Ownership”, 1998 ( ). CF Economic Apartheid in America, Collins and Yeskel, 2000, P. 56.

Source: Economic Apartheid in America, Collins, Yeskel, p. 42, 44.

Is there a better measure of genuine economic progress?

ISEW (or GPI) by Column: A: Personal Consumption B: Income Distribution C: PC adj. for Income Distr. D: Value of Household Labor E: Value of Volunteer Work F: Services of Household Capital G: Services of Highways and Streets H: Cost of Crime I: Cost of Family Breakdown J: Loss of Leisure Time K: Cost of Underemployment L: Cost of Consumer Durables M: Cost of Commuting N: Cost of Household Pollution Abatement O: Cost of Automobile Accidents P: Cost of Water Pollution Q: Cost of Air Pollution R: Cost of Noise Pollution S: Loss of Wetlands T: Loss of Farmland U: Depletion of Nonrenewable Resources V: Long-Term Environmental Damage W: Cost of Ozone Depletion X: Loss of Forest Cover Y: Net Capital Investment Z: Net Foreign Lending and Borrowing

GPI Functional Groups and Authors for this study

Summary Results for Four Spatial Scales Detail

Detailed Reports are available at: The detailed, column by column report: The master spreadsheet: Thanks to: Burlington Legacy Project Champlain Initiative Dozens of local and state contacts

An Ecological Economics Capital Stock Approach to Quality of Life Assessment in Burlington, Vermont, USA Joseph Kelly and Jon D. Erickson Rubenstein School of Environment and Natural Resources University of Vermont and the Fall 2003 Introduction to Ecological Economics class: C. Andrews, J. Antonucci, S. Augeri, E. Berliet, M. Birkby, W. Brennan, E. Brown, M. Brundige, M. Buechler, M. Cohen, C. Coleman, C. Coogan, A. Cooper, K. Costello, M. Crane, A. D'Aversa, A. Davis, J. DeCelles, A. Delgado, M. DiBiccari, H. Dudley, J. Dye, A. Effler, M. Egbers, P. Freeman, M. Gilmartin, E. Graves, M. Hall, C. Hancock, E. Harrison, E. Hartz, K. Hayes, C. Herold-Lind, R. Holthaus, D. Hubbard, H. Johansson, L. Junger, B. Kelly, A. Kirschner, A. Klein, M. Martin, I. Marvin, C. McCreight, B. O'Donoghue, M. Palmer, B. Parke, A. Pearlstein, J. Randall, C. Reeves, D. Rosa, C. Smith, J. Smith, R. Sterling, C. Sullivan, T. Van Etten, T., A. Verinis, P. Virchick, A. Voinov, J. Waters Photo: Anton Voinov

Eight Neighborhoods 1 – New North End 2 – Old North End 3 – Downtown 4 – Collegetown 5 – Northeast 6 – The Hill 8 – South End 7 – Pine Street

Survey Questions I.Neighborhood Identity II.Built Capital III.Natural Capital IV.Human Capital V.Social Capital VI.Total Quality of Life VII.Demographics Photo: Anton Voinov Detail

Built Capital How important are the things you own or rent (for example, your home, car, furniture, clothes, etc.) to your happiness and quality of life? Photo: Anton Voinov

Natural Capital How important is the quality of the natural environment in which you live (for example, air, water, open space, cleanliness) to your happiness and quality of life?

Human Capital How important are investments made in yourself (for example, education, job skills, health, spirituality) to your happiness and quality of life? Photo: Anton Voinov

Social Capital How important are relationships with your family and friends to your happiness and quality of life? How important are interactions with people in your neighborhood to your happiness and quality of life?

Total Quality of Life How would you rate your overall quality of life (on a scale from 1 [very high] to 5 [very low])? Please distribute 100 points across the following four categories according to their importance to your overall quality of life. Personal and public investments in your home, lifestyle, and neighborhood Investments and access to the natural environment in or near your neighborhood Your personal well-being and investments made in yourself Your relationship with your family, friends, and community Photo: Anton Voinov

Are you happy with your current family or personal yearly income? Percent “Yes” for Burlington = 66%

If not, how much more income per year would you need to be satisfied?

Student Effect? Testing the Income Effect

Without Students 21% of respondents Testing the Income Effect

Neighborhood Analysis

Burlington v. EcoVillages

Evolving analysis and results posted at: Photo: Anton Voinov