1. Index = economic efficiency / social inefficiency x environmental inefficiency Index = GDP per head / percent unemployment x carbon emissions per head (normalised to year 2000)
A simple index proposed to measure “sustainable economic growth”.
The Scottish government’s economic strategy prioritises economic growth, measured as GDP, but also emphasises the importance of reducing unemployment and of establishing a low-carbon economy.
The Scottish Government has set its core purpose “to create a more successful country, with opportunities for all of Scotland to flourish, through increasing sustainable economic growth”.
It would be useful to have an indicator of “sustainable economic growth”
GDP is a somewhat crude measure of economic activity, and expressed as GDP per head is a rough measure of the economic efficiency of the nation in utilising its workforce and natural resources.
Unemployment is most certainly linked closely to numerous social ills such as mental health, exclusion, family breakdown, public health problems and criminality.
Carbon emissions per head is indicative of the efficiency and effectiveness of climate change policy, but is also indicative of wider environmental concern at the national policy level.
So, this index combines the economic, social and environmental elements of sustainability. Each is of around the same importance if you look at the percentage changes in each factor across the years 2000 to 2014 for these 6 countries.
It appears, despite some volatility, that Scotland’s progress on sustainable economic growth is relatively good.