Measuring Genuine Well-being:
This presentation is the property of its rightful owner.
Sponsored Links
1 / 41

Mark Anielski, Director, Sustainability Measurement, Pembina Institute PowerPoint PPT Presentation


  • 87 Views
  • Uploaded on
  • Presentation posted in: General

Measuring Genuine Well-being: The Genuine Progress Indicator System of Sustainable Well-being Accounts for Alberta Atkinson Foundation Meeting Toronto October 1, 2001. Mark Anielski, Director, Sustainability Measurement, Pembina Institute Senior Fellow, Redefining Progress, Oakland CA.

Download Presentation

Mark Anielski, Director, Sustainability Measurement, Pembina Institute

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Mark anielski director sustainability measurement pembina institute

Measuring Genuine Well-being: The Genuine Progress Indicator System of Sustainable Well-being Accounts for AlbertaAtkinson Foundation MeetingTorontoOctober 1, 2001

Mark Anielski,

Director, Sustainability Measurement, Pembina Institute

Senior Fellow, Redefining Progress, Oakland CA


Mark anielski director sustainability measurement pembina institute

“The welfare of a nation

can scarcely be inferred

from a measurement of national income

as defined by the GDP…

goals for ‘more’ growth

should specify of what

and for what”

Simon Küznets

Pembina Institute


Mark anielski director sustainability measurement pembina institute

“The Gross National Product includes air pollution and advertising for cigarettes, and ambulance to clear our highways of carnage. It counts special locks for our doors, and jails for the people who break them. GNP includes the destruction of the redwoods and the death of Lake Superior. It grows with the production of napalm and missiles and nuclear warheads. And if GNP includes all this, there is much that it does not comprehend. It does not allow for the health of our families, the quality of their education, or the joy of their play. It is indifferent to the decency of our factories and the safety of our streets alike. It does not include the beauty of our poetry or the strength of our marriages, or the intelligence of our public debate or the integrity of our public officials. GNP 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

March 18, 1968


Mark anielski director sustainability measurement pembina institute

Redefining Economics

Economics

Oiko nomikus

Wealth (Capital)

Weal th

Household

Management

Well-Being

Condition of

sustainable “living capital” stewardship


Mark anielski director sustainability measurement pembina institute

U.S. GPI.. declining economic welfare

$30,000

$25,000

U.S. GDP per capita

$20,000

US $ per capita, 1992 chained dollars

$15,000

U.S. GPI per capita

$10,000

$5,000

$-

1950

1955

1960

1965

1970

1975

1980

1985

1990

1995

Source: Data derived from spreadsheets from the U.S. Genuine Progress Indicator (GPI) for 1999. Redefining Progress, Oakland, CA.

www.rprogress.org


Mark anielski director sustainability measurement pembina institute

U.S. …making money, growing poor


Mark anielski director sustainability measurement pembina institute

Canada….better economic well-being?


Mark anielski director sustainability measurement pembina institute

Genuine Progress Indicators (GPI) Sustainable Well-being Accounting System

Quality of Life

Values

CPRN’s Quality of Life

Dialogue with Canadians

Quality of life needs and priorities

based on citizen input and dialogue

Societal and Personal

Well-Being

Key determinants of well-being

51 Indicators of Well-being

Genuine

Progress

Indicators

Account

Economic

Well-Being

Environmental

Well-Being

Spiritual

Well-Being


Mark anielski director sustainability measurement pembina institute

(GPI) Sustainable Well-being Accounting System:

GPI Accounts

  • Social

  • Accounts

  • Human Capital

  • Social Capital

Genuine

Progress

Indicator

Account

  • Economic

  • Accounts

  • Economic Output

  • Produced Capital

  • - Financial Capital

  • Environmental

  • Accounts

  • Natural Capital

  • Ecosystem Services

GPI Balance Sheet

GPI Sustainable Income

Statement

Condition of

Well-Being Accounts

(qualitative/quantitative)

Full Cost & Benefit Accounts ($$)


Elements of well being

Elements of Well-being

Societal

Well-Being

Account

Economic

Well-Being

Account

Environmental

Well-Being

Account

  • Economic Growth

  • Economic Diversity

  • Trade

  • Disposable Income

  • Personal Expenditures

  • Taxes

  • Debt

  • Savings Rate

  • Household Infrastructure

  • Public Infrastructure

  • Income Inequality

  • Poverty

  • Paid Work Time

  • Unemployment

  • Underemployment

  • Parenting and Eldercare

  • Leisure Time

  • Volunteerism

  • Commuting Time

  • Family Breakdown

  • Crime

  • Democracy

  • Intellectual Capital

  • Life Expectancy

  • Infant Mortality

  • Premature Mortality

  • Disease

  • Obesity

  • Suicide

  • Substance Abuse

  • Auto Crashes

  • Gambling

  • Ecological Footprint

  • Ecosystem Health

  • Carbon Budget

  • Energy Efficiency

  • Oil and Gas Reserve Life

  • Agriculture Sustainability

  • Timber Sustainability

  • Wetlands-Peatlands

  • Fish & Wildlife

  • Air Quality

  • Water Quality

  • Toxic Waste

  • Landfill Waste


Societal well being indicators account

Societal Well-being Indicators Account

  • Societal and Personal Well-being Indicators

  • Poverty (% living below LICO and a Living Wage);

  • Income distribution (Gini coefficient)

  • Unemployment rate

  • Underemployment rate

  • Paid work (time use)

  • Household work (time use)

  • Parenting and eldercare (time use)

  • Free (leisure) time

  • Volunteer time

  • Commuting time

  • Life expectancy

  • Premature mortality

  • Infant mortality

  • Obesity

  • Suicide

  • Youth drug use

  • Auto crashes

  • Divorce and family breakdown

  • Crime

  • Problem gambling

  • Voter participation

  • Educational attainment

  • Regrettable Societal Costs and Benefits **

  • Value of housework

  • Value of parenting and eldercare

  • Value of volunteer work

  • Value of free time

  • Cost of unemployment and underemployment

  • Cost of auto crashes

  • Cost of commuting

  • Cost of crime

  • Cost of family breakdown

  • Cost of suicide

  • Cost of gambling

  • Cost of obesity and unhealthy lifestyles

  • Cost of gambling

  • “Cost” of income inequality (GDP adjusted by the Gini coefficient for income inequality)

Societal and Personal

Well-Being Account

Genuine

Progress

Indicators

Economic

Well-being

Account

Environmental

Well-being

Account

* Indicators are expressed in non-monetary

units or normalized qualitative indices.

** All values are expressed in monetary units which can be used to generate the GPI Net Sustainable Income statement adjusting GDP for unaccounted benefits and costs.


Environmental well being accounts

Environmental Well-being Accounts

  • Regrettable Environmental and Natural Capital Depreciation Costs**

  • Cost of public and private environmental clean-up

  • Cost of toxic waste management

  • Cost of household/business waste management and pollution control costs

  • Deprecation cost of nonrenewable resource use

  • Cost of long-term environmental damage from fossil fuel use

  • Cost of unsustainable forest resource use

  • Cost of loss of farmland

  • Cost of loss of wetlands and peatlands

  • Cost of loss of wildlife and fisheries

  • Cost of loss of ecosystem services

  • Cost of air pollution

  • Cost of water pollution

  • Environmental Well-being Indicators*

  • Conventional crude oil and natural gas reserve life

  • Oilsands reserve life

  • Energy use

  • Agriculture sustainability (composite index)

  • Timber sustainability index

  • Forest fragmentation

  • Parks and wilderness

  • Fish and wildlife population health

  • Wetlands

  • Peatland

  • Water quality

  • Air quality

  • Greenhouse gas emissions

  • Carbon budget deficit

  • Hazardous waste

  • Landfill waste

  • Ecological footprint

Environmental

Well-being

Account

Genuine

Progress

Indicators

Economic

Well-being

Account

Societal

Well-being

Account

* Indicators are expressed in non-monetary

Units or normalized qualitative indices.

** All values are expressed in monetary units which can be used to generate the GPI Net Sustainable Income statement adjusting GDP for unaccounted benefits and costs.


Economic well being accounts

Economic Well-being Accounts

  • Full costs and benefits of economic output, produced, and financial capital

  • Gross Domestic Product (GDP)

  • Personal Consumption Expenditures (PCE)

  • PCE adjusted for income inequality/distribution (“cost” of inequality)

  • Non-defensive government expenditures

  • Value of services of consumer durables

  • Cost of consumer durables (regrettable depreciation)

  • Value of public infrastructure services

  • Net capital investment

  • Cost of household and personal debt servicing

  • (see also, Societal costs)

  • Economic Well-being Indicators

  • Economic growth (real GDP per capita)

  • Economic diversity (distribution of GDP by sector)

  • Trade balance (exports less imports)

  • Real disposable income

  • Real weekly wages

  • Personal consumption expenditures

  • Transportation expenditures

  • Taxes (real $ per capita)

  • Household and personal debt per capita

  • Savings rate

  • Public infrastructure (value of services)

  • Household infrastructure (value of services)

Economic-Well-being

Account

Genuine

Progress

Indicators

Societal

Well-being

Account

Environmental

Well-being

Account

* Indicators are expressed in non-monetary

units or normalized qualitative indices.

** All values are expressed in monetary units which can be used to generate the GPI Net Sustainable Income statement adjusting GDP for unaccounted benefits and costs.


A portrait of alberta s condition of well being gpi balance sheet diagnosis 1999

A Portrait of Alberta’s Condition of Well-being (GPI Balance Sheet) Diagnosis 1999

Societal and Personal Health

Conditions

Economic

Well-being Conditions

Environmental

Well-being Conditions


Alberta s condition of well being diagnosis for 1999 the gpi sustainability circle index

Alberta’s Condition of Well-being Diagnosis for 1999:The GPI Sustainability Circle Index


Historical portraits of well being

Historical Portraits of Well-being

1999

1998

1961

The worst

The best


Mark anielski director sustainability measurement pembina institute

Alberta Economic Growth vs. Genuine Progress Index

100.0

90.0

GDP Growth Index

Best year: 1999

Worst year: 1961

80.0

Index (where 100=best)

70.0

60.0

GPI Well-Being Index

50.0

Best year: 1961

Worst year: 1998

40.0

1961

1966

1971

1976

1981

1986

1991

1996

1999

Source: Alberta GPI Accounts 1961-1999


The gpi sustainable income statement

The GPI Sustainable Income statement

  • GDP – personal consumption expenditures

  • adjust for income inequality

  • + value of unpaid work (housework, parenting, volunteerism)

  • + value of the household and public infrastructure

  • - cost of household debt servicing

  • - value of the loss of human and social capital:

  • - loss of leisure time

  • - cost of underemployment and unemployment

  • - cost of divorce, suicide, auto crashes, divorce, gambling

  • value of natural capital depreciation:

    • - nonrenewable natural capital (minerals, oil, gas,coal)

    • - unsustainable renewable natural capital (forests, agriculture)

  • cost of loss of ecosystem services:

    • (carbon sequestration, air pollution,water pollution, forests, wetlands, and peatlands)

  • = Net Sustainable Income (output)


Mark anielski director sustainability measurement pembina institute

Alberta GDP versus Sustainable Economic Welfare

The value of unpaid work is estimated at $38.8 billion (1998$) or 35.4% of Alberta’s GDP in 1999.

The social and human capital costs are estimated at $23.4 billion (1998$) or 21.3% of Alberta’s GDP.

Total environmental costs and natural capital depreciation is estimated at $26.4 billion (1998$) or 24.0% of Alberta’s GDP.

Pembina Institute


Mark anielski director sustainability measurement pembina institute

Pictures at the Exhibition:

The Story of Alberta’s Well-being and Sustainability


Mark anielski director sustainability measurement pembina institute

Condition of Well-being Report


Mark anielski director sustainability measurement pembina institute

GDP grows but to whose benefit?

40,000

40,000

Despite increasing economic growth since 1981, average real disposable incomes have stagnated since peaking in 1981.

35,000

35,000

30,000

30,000

25,000

25,000

GDP Per Capita (1998$)

20,000

20,000

Personal Disposable Income Per Capita (1998$)

15,000

15,000

In a 1999 national survey, 23% of Albertans (highest in Canada) said they would not have enough savings to sustain themselves beyond one month’s salary.

(Source:Canadian Council on Social Development)

10,000

10,000

Economic growth

5,000

5,000

Disposable income

-

-

1961

1966

1971

1976

1981

1986

1991

1996


Mark anielski director sustainability measurement pembina institute

Economic well-being at risk?

Pembina Institute


Mark anielski director sustainability measurement pembina institute

Another day older….

40,000

7,000.00

35,000

6,000.00

30,000

5,000.00

25,000

4,000.00

Premature Mortality

20,000

GDP Per Capita (1998$)

Premature mortality from all causes has been declining steadily since 1980; the average life expectancy of Albertans (men and women) has increased more than 7 years from 72.0 years in 1961 to 79.3 years in 1999.

3,000.00

15,000

2,000.00

10,000

Economic growth

1,000.00

5,000

Premature mortality

-

-

1961

1966

1971

1976

1981

1986

1991

1996

Pembina Institute


Mark anielski director sustainability measurement pembina institute

…. and deeper in debt

40,000

55,000

Household debt servicing costs now exceed real disposable income for the first time in history. The average household debt per Albertan has almost doubled in 40 years from 57% of real disposable income in 1961 to 109% in 1999

35,000

45,000

30,000

35,000

25,000

While real per capita household debt grew at a rate of 11.3% per annum, real disposable income grew by only 2.1% per annum (1961-1999).

GDP Per Capita (1998$)

20,000

25,000

Debt per Capita (1998$)

15,000

15,000

10,000

5,000

Economic growth

5,000

Household debt

-

(5,000)

1961

1966

1971

1976

1981

1986

1991

1996

Pembina Institute


Mark anielski director sustainability measurement pembina institute

More GDP…more poverty?

40,000

30

Between 1961 and 1999, the level of poverty (LICO) increased 37.1%; Alberta had Canada’s third lowest poverty rate

35,000

25

30,000

20

25,000

Poverty (% of all persons living below the low income cut-off)

20,000

15

GDP Per Capita (1998$)

15,000

10

We estimated roughly 20% of Albertans used the provinces 74 food banks; 17.2% of households are estimated to live below a living wage ($24,332 per annum for family of four).

10,000

5

Economic Growth

5,000

Poverty

-

-

1961

1966

1971

1976

1981

1986

1991

1996

Pembina Institute


Mark anielski director sustainability measurement pembina institute

GROWING GAP: Gap Between Alberta’s Rich (Top Income Quintile) and the Poor (Lowest Income Quintile) Comparing Incomes on a Before Government Transfers, After Taxes, and Total Income Basis, 1981 to 1998


Hourly income comparisons alberta 1998

Jubilee?

Hourly Income Comparisons, Alberta, 1998

The top 20% income group of Albertans earned 14.5 times more than the lowest 20% almost double the ratio of 8.2 in 1980.

The eight wealthiest Albertans earned an estimated 5,645 times more per hour than an Albertan working full-time at the minimum wage.


Mark anielski director sustainability measurement pembina institute

Less time with the kids but more GDP

40,000

200

180

35,000

160

30,000

140

25,000

120

Parenting and Eldercare (hours per person 15 years and over per

year)

GDP Per Capita (1998$)

20,000

100

The value of unpaid work in Alberta in 1999

is estimated at $38.8 billion (1998$) or 35.4%

of Alberta’s GDP.

80

15,000

60

10,000

40

Nearly 70% of full-time employed, married mothers feel rushed and stressed on a daily basis

Economic growth

5,000

20

Parenting and eldercare

-

-

1961

1966

1971

1976

1981

1986

1991

1996


Mark anielski director sustainability measurement pembina institute

More divorces add to GDP growth

40,000

55%

The rate of divorce rose 4.6% per annum compared to real GDP growth of 4.4% per year, 1961 to 1999

35,000

45%

30,000

35%

25,000

Family Breakdown (% of marriages that end in divorce)

GDP Per Capita (1998$)

20,000

25%

The estimated cost of divorce and family

breakdown in Alberta in 1999

is estimated to contribute $148 million(1998$)

to Alberta’s economic growth.

15,000

15%

10,000

5%

Economic growth

5,000

Family breakdown

-

-5%

1961

1966

1971

1976

1981

1986

1991

1996

Source: Statistics Canada, CANSIM special retrieval and Alberta Economic Accounts 1999


Mark anielski director sustainability measurement pembina institute

$40,000

$35,000

$30,000

$25,000

GDP per capita (1998$)

$20,000

$15,000

$10,000

$5,000

2.0

$-

-

1961

1966

1971

1976

1981

1986

1991

1996

Rising suicide adds to the GDP

20.0

18.0

16.0

14.0

12.0

Suicide is the leading cause of death amongst Calgary males aged 10-49 years.

Suicide rate per 100,000

10.0

8.0

6.0

GDP at market prices, expenditure

based (1998$ per capita)

Suicide rate for both sexes per

4.0

100,000 population

Pembina Institute


Mark anielski director sustainability measurement pembina institute

Health of democracy?

40,000

100

90

35,000

80

30,000

70

25,000

60

Democracy (voter participation %)

GDP Per Capita (1998$)

20,000

50

40

15,000

30

10,000

20

Economic growth

5,000

Voter participation

10

-

-

1961

1966

1971

1976

1981

1986

1991

1996

Pembina Institute


Mark anielski director sustainability measurement pembina institute

Growing Ecological Deficits…

40,000

12.0

35,000

10.0

30,000

8.0

25,000

Ecological Footprint (hectares per capita)

GDP Per Capita (1998$)

20,000

6.0

Alberta has the fourth largest ecological footprint in the world after the United Arab Emirates, Singapore and the United States of America.

15,000

4.0

10,000

2.0

Economic growth

5,000

Ecological footprint

-

0.0

1961

1966

1971

1976

1981

1986

1991

1996

Pembina Institute


Mark anielski director sustainability measurement pembina institute

Alberta’s Footprint, fourth largest in the world….

5 times the global ecological carrying capacity

Global Biological Capacity

Pembina Institute


Mark anielski director sustainability measurement pembina institute

$40,000

$35,000

$30,000

$25,000

GDP per capita( 1998$)

$20,000

20

$15,000

15

$10,000

10

$5,000

5

$-

0

1961

1966

1971

1976

1981

1986

1991

1996

Depleting oil and gas capital…more GDP

45

There are less than 10 years of natural gas

reserves remaining, based on current production and stocks. However, Alberta has more oil in the oil sands than Saudi Arabia’s official reserves, more than 300 years of production.

40

35

30

25

Crude Oil and Natural Gas Reserve Life (years remaining)

GDP at market prices, expenditure

based (1998$ per capita)

Crude Oil and Natural Gas Reserve

Life Average

The estimated cost of depreciation of nonrenewable resources is estimated at $10.6 billion in 1999 or 9.7% of GDP.


Mark anielski director sustainability measurement pembina institute

$40,000

$35,000

$30,000

$25,000

GDP per capita (1998$)

$20,000

$15,000

1.50

$10,000

1.00

$5,000

0.50

$-

-

1961

1966

1971

1976

1981

1986

1991

1996

Depleting timber capital…more GDP

4.00

More than 90% of Alberta’s forests are fragmented

3.50

3.00

2.50

Timber Sustainability Index (ratio of growth to depletions)

2.00

GDP at market prices, expenditure

based (1998$ per capita)

Timber Sustainability Index, the ratio

of annual increment (growth) divided

by total harvest, energy and

agriculture depletions


Mark anielski director sustainability measurement pembina institute

Growing Carbon budget deficit…more GDP

40,000

5

The estimated cost of Alberta’s carbon emissions to global warming in 1999 are estimated at $4.1 billion (1998$) or 3.7% of Alberta’s GDP.

35,000

4

30,000

25,000

3

Carbon Budget

GDP Per Capita (1998$)

20,000

2

15,000

Economic growth

Carbon budget deficit

10,000

Carbon budget deficit

1

Carbon budget surplus

5,000

-

-

1961

1966

1971

1976

1981

1986

1991

1996

Pembina Institute


Mark anielski director sustainability measurement pembina institute

Water quality improving but is it sustainable?

40,000

100

90

35,000

80

30,000

70

25,000

60

Water Quality Index

GDP Per Capita (1998$)

20,000

50

40

15,000

30

While surface (river) water quality has improved very little is known about the long-term sustainability of Alberta’s groundwater aquifers.

10,000

20

5,000

Economic growth

10

Water quality

-

-

1961

1966

1971

1976

1981

1986

1991

1996


Next steps gpi sustainability accounting and reporting

Provincial/State GPI

Corporate GPI

National GPI

Local GPI

Next Steps….GPI Sustainability Accounting and Reporting

National GPI Accounts:

Canada, U.S.

GPI Accounts for

Ontario, Quebec, B.C., Alberta

Maritimes

Quality of Life Indicators

Global Reporting Initiative (GRI)


Mark anielski director sustainability measurement pembina institute

Alberta GPI Balance Sheet (1960-2000)

(physical and monetary stock accounts)

For additional information:

www.pembina.org

[email protected]

Pembina Institute


  • Login