Economic growth and quality of life: a threshold hypothesis

Max-Neef, Manfred

doi:10.1016/0921-8009(95)00064-x

Cited by 374 publications

(187 citation statements)

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“…This GPI-GSP gap was relatively small from 1960 until the mid-1980s, before widening substantially (Figure 1), driven largely by growing income inequality [57,58]. The data did not, however, support the "threshold" hypothesis of ecological economists, who argue that GDP/GSP growth no longer improves quality of life once a certain threshold of material needs is crossed [12], or the related idea that growth had become "uneconomic" in high-income nations [6][7][8]. Although Maryland's GPI grew more slowly than GSP and dropped even more sharply than GSP during the 2008-2009 recession, it showed no sign of plateauing [53].…”

Section: Overviewcontrasting

confidence: 41%

Taking the First Steps beyond GDP: Maryland’s Experience in Measuring “Genuine Progress”

Hayden¹,

Wilson²

2018

Sustainability

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Gross Domestic Product's (GDP) limitations as a prosperity indicator are now widely recognized, leading to a search for "beyond-GDP" alternatives. The US state of Maryland has calculated one such alternative, the Genuine Progress Indicator (GPI), since 2010. What effect is Maryland's GPI having in practice? Is there any evidence to date that the GPI has shaped policy and public priorities in ways that live up to its supporters' hopes-whether for a transformative shift beyond the economic-growth paradigm or simply better policymaking? What key obstacles exist to fulfilling those goals? This article draws on semi-structured interviews with elite respondents-including Maryland's former governor, senior public servants, academics, non-governmental organization employees and foundation leaders-involved in producing, advocating and using the GPI, along with analysis of relevant documents. Although significant impacts on policy are not yet evident and a change of governor has removed high-level support, the GPI initiative has revealed innovative possibilities for more environmentally and socially minded policymaking and introduced new ideas with potential long-term impacts. However, various challenges remain, including strengthening the political constituency behind the GPI, more deeply embedding it into the policymaking process and addressing the GPI's own limitations in supporting a beyond-GDP economic narrative.

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Section: Overviewcontrasting

confidence: 41%

Taking the First Steps beyond GDP: Maryland’s Experience in Measuring “Genuine Progress”

Hayden¹,

Wilson²

2018

Sustainability

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“…Neumayer (2000cNeumayer ( , 2003 argues the apparently striking finding that ISEW growth falls away from GNP growth after hitting a 'threshold' (Max-Neef, 1995) is built into the methodology, almost inevitably leading to the results found. Seemingly, more unequal income distributions, increasingly unsustainable resource exploitation and long-term environmental degradation are driving the wedge between GNP and the ISEW.…”

Section: The Index Of Sustainable Economic Welfare (Isew) Familymentioning

confidence: 99%

Weak and strong sustainability in the SEEA: Concepts and measurement

Dietz

Neumayer

2007

Ecological Economics

350

153

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In this paper, we explain how the latest international handbook on environmental accounting, the System of Integrated Environmental and Economic Accounting or SEEA (United Nations et al., 2003), can be used to measure weak and strong sustainability. We emphasise the importance of understanding the conceptual differences between weak and strong sustainability. We then outline what we consider to be current best practice in measurement, all the time flagging the relationship between our discussion and that of the SEEA-2003. This is an important task in our view, because, despite covering a very wide range of relevant conceptual and empirical issues, the handbook is by design not meant to provide clear guidelines for the purpose of measuring sustainability in either its weak or strong version.2

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“…Local developmental policies in higher income areas are less effective in appropriately meeting citizen needs and desires. After a certain level of local economic developments such as higher income levels, low unemployment rates, and fluent investments are achieved, the impact of income increase on QoL will be less significant (Max-Neef, 1995). Citizens are motivated less by economic considerations and the positive impacts of economic growth on citizens' QoL are declining.…”

Section: Developmental Policymentioning

confidence: 99%

“…For every society, there seems to be a period that economic growth brings about an improvement in QoL, but only up to a point, which is called "the threshold point" (Eckersley, 2000a(Eckersley, , 2000bMax-Neef, 1995). It is argued that economic developments produce positive effects only at the lower levels of income.…”

Section: Developmental Policymentioning

confidence: 99%

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The Effects of Community Quality of Life on Local Policy Decisions

Choi²

2014

Applied Research Quality Life

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There have been extensive debates on the factors that influence local policy decisions.Although many researchers have contributed to uncovering various influences such as political, economic, institutional, and demographic factors on local policy decisions, however, the concept of QoL rarely has used in extant literature. Local government spending is likely to be affected by citizen demands for achieving community well-being. Additionally, given that different policy functions variably affect local circumstances, the impact of QoL on local policy decisions will depend on the policy area. Hence, this study examined the relationship between QoL and local budgetary decisions based on Peterson's (1981) policy scheme of, three distinct policy arenas (developmental, allocational, and redistributive policy). In examining the relationship of QoL and city spending across policy functions, I also considered economic, political, institutional, and demographic factors, derived from various theoretical perspectives on local policy decisions.The relative influences of community QoL as well as other factors on local policy decisions were estimated by two-stage least squares regression analysis (2SLS) for developmental spending and by ordinary least squares (OLS) for allocational and redistributive spending. To measure community QoL, this study used 89,066 completed surveys from 167 communities in the United States for 2002-2008 are used. QoL appeared as a critical factor influencing local government expenditures in the three policy areas. The impact of QoL on local spending in the three areas differed depending on city income levels; city income levels then moderated local policy decisions.iii These findings suggest that local policy priorities adjusted in accordance with economic growth. Allocational policy functions also should be thought to be functions of cities geared toward giving them a competitive edge over other cities by meeting evolved citizen preferences for city amenities. These findings also point to distinct patterns of political activities in each policy arena. Given that community QoL reflects adjusted citizens' demands, I contend that community QoL can contribute to performance management by providing additional public information and a complementary performance indicator.iv

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Economic growth and quality of life: a threshold hypothesis

Cited by 374 publications

References 1 publication

Taking the First Steps beyond GDP: Maryland’s Experience in Measuring “Genuine Progress”

Taking the First Steps beyond GDP: Maryland’s Experience in Measuring “Genuine Progress”

Weak and strong sustainability in the SEEA: Concepts and measurement

The Effects of Community Quality of Life on Local Policy Decisions

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