GDP was not an indicator of social or economic welfare at the beginning of design. The GPI has expanded the accounting framework for GDP and established three economic, environmental and social accounts that better reflect the sustainability of the emerging economic model. When the economic development reaches a certain level, the GPI will reflect the excessive consumption of resources, the environmental pollution, and social welfare losses simultaneously, which is very different from the measurement of GDP.
References:
(1) Kubiszewski, I., Costanza, R., Franco, C., Lawn, P., Talberth, J., Jackson, T., & Aylmer, C. (2013). Beyond GDP: Measuring and Achieving Global Genuine Progress. Ecological Economics, 93, 57-68.
(2) Kuznets, S. (1934). National Income, 1929-1932. National Bureau of Economic Research.
(3) Talberth, J., Cobb, C., & Slattery, N. (2007). The Genuine Progress Indicator 2006: A Tool for Sustainable Development. Redefining Progress, 30.1:13-28(16).
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