The Relationship Between Welfare Measures and Indicators of Sustainable Development
Geir B. Asheim
Handbook Of Environmental Accounting, Chapter 10
This chapter investigates whether measures of welfare improvement indicates sustainability. First it shows how the value of net investments and real NNP growth (appropriately extended if population growth is positive) can be used to measure welfare improvement, before turning to following two questions: (1) Does non-negative value of net investments imply sustainable development? (2) Does sustainable development imply non-negative value of net investments? The main conclusion is that welfare improvement is not a sufficient condition for sustainability, but under special conditions it is a necessary condition for sustainability.