GDP's Neglect of Environmental Wellbeing
A primary weakness of using Gross Domestic Product (GDP) as a proxy for living standards is its failure to account for the environment's role in current and future wellbeing. The profound environmental impact of economic activities, particularly the use of fossil fuels, is not captured in GDP calculations. This effect is visually demonstrated by 'hockey stick' graphs, such as those in Figures 1.2a and 1.2b, which show the dramatic rise in atmospheric CO2 and global temperatures corresponding with increased fossil fuel consumption.
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Robert Kennedy's Critique of GDP
Correlation Between GDP and Wellbeing
Components of National Well-being
Exercise 3.1: Tool for Comparing National Well-being
GDP's Neglect of Environmental Wellbeing
Evaluating Economic Growth vs. National Wellbeing
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Critique of Economic Output as a Measure of Progress
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Non-Market Contributions to Wellbeing
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GDP as a Measure of an Economy's Productive Capacity
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China's Economic Decline
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Challenges in Measuring Aggregate Output
Role of National Statistical Agencies in Measuring Economic Output
Circular Flow Model of the Economy
Exports
Nominal GDP
Role of Statistical Agencies in GDP Estimation
Challenges in Measuring GDP Accurately
Rationale for Using Total GDP for Economic Size Analysis
Imports as a Function of Domestic Income
GDP Composition and Future Growth
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Figure 1.1: The History's Hockey Stick Graph of GDP Per Capita
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Japan's Sharp 'Hockey Stick' Kink around 1870
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Limitations of GDP Per Capita as a Measure of Well-being
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World Wildlife Fund
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