An Experimental Laboratory Test of the Effects of Alternative Indicators of Progress

Abstract

Given that economic growth is typically associated with ecological destruction and little improvement in human happiness, alternative indicators of progress have been developed to provide decision-makers with additional non-economic information that might better protect the environment and promote human well-being. However, to our knowledge, no experimental evidence exists which demonstrates that the use of such alternative indicators actually causes changes in behaviors. We therefore asked participants to pretend that they were the mayor of a small city that had the opportunity to develop natural land on its borders. Participants were randomly assigned to receive either standard indicators (consisting of only economic information) or alternative indicators (consisting of economic, ecological, and well-being information) as they made decisions over the course of their "term" as mayor. Participants who received alternative indicator feedback developed significantly fewer acres of the natural land than did those who received standard indicator feedback (Cohen's d = .52). The effect of indicator type did not significantly interact with gender, ethnicity, or value orientation, but participants low in need for cognition were more sensitive to the type of indicator provided than were those high in need for cognition. The results provide the first experimental evidence supporting the claim that alternative indicators can cause decision-makers to focus less on economic outcomes and to prioritize wellbeing and ecological outcomes.