COMMENTARY

Peter Burgess

Alberta Genuine Progress Indicator ... The Alberta GPI: 51 Indicators of 'Progress'

'...the welfare of a nation can scarcely be inferred from a measurement of national income...' — Simon Küznets

These accounts tracked 51 indicators from 1961 to 1999. The indicators were grouped as economic, social or environmental.

A report was presented for each indicator, and the information was combined to form one consolidated indicator of well-being for Alberta that was presented both as an index and as a monetary estimate. A series of 20 technical reports were also produced. The technical reports describe the methodology and sources used to develop the indicators.

To celebrate Alberta's 100th anniversary in 2005, Pembina economist, Amy Taylor, updated the 51 indicators that form the Alberta GPI accounts.

So how is Alberta doing?

While Alberta's GDP continues to rise, the province's GPI has leveled off. This indicates that our economic prosperity may be occurring at a cost to the environment and the social well-being of our communities.

Read Amy Taylor's Alberta GPI Updated Summary Report (2005)

Check out 51 Alberta GPI Indicator Summary and 20 Technical reports below (2005)

View the Alberta GPI Slide Show

Get the original report: The GPI: A Principled Approach to Economics (1999)

Alberta GPI Summary and Technical Reports

I ... Alberta's GPI: 12 Economic Indicators

1. Economic Diversity » Summary report A diversified economy protects society from boom and bust cycles that lead to social problems. In this summary, the percent of the GDP attributable to each industry in Alberta is tracked giving a measure for Alberta's diversification.

2. Economic Growth » Summary report The Genuine Progress Indicator uses GDP to measure 'Economic Growth.' Economic growth is 1 of the 51 indicators that make up the GPI. The GDP measures the flow of money into the economy well but fails to differentiate spending that detracts from societal well-being from spending that contributes to it.

3. Trade » Summary report Alberta's economic prosperity is highly dependent on trade, primarily the export of natural capital such as coal, oil, gas, timber and agricultural products. The monetary value of exports from Alberta's economy is analyzed. 4. Disposable Income » Summary report Alberta's increasing GDP is analyzed in relation to disposable income. The results suggest that not all Albertans are benefiting from a booming economy. 5. Weekly Wage Rate » Summary report » Technical report The average weekly salaries of Albertans between 1961 and 2003 are measured. Using the GPI model, salaries are analyzed in relation to debt and savings to give a more accurate measure of household economic stability. 6. Personal Expenditures » Summary report Spending on goods and services after income tax and other mandatory income deductions is an indicator of personal expenditures. This summary looks at how Albertans spend their personal money and how those patterns have changed over time. 7. Transportation Expenditures » Summary report » Technical report The GPI assesses how much money Albertans are spending on transportation and what the associated environmental costs are. 8. Taxes » Summary report This summary looks at how much money Albertans are paying on taxes and whether or not this spending enhances social well-being. 9. Savings » Summary report Savings are what is left over from income after all living expenditures including taxes have been made. Here we explore the trend in savings over time. 10. Household Debt » Summary report The cost of household debt servicing is based on an estimate of the interest payments on chartered bank customer loans. Household debt grew more than five times faster per annum than disposable income between 1961 and 2003. 11. Public Infrastructure » Summary report In GPI accounting, the value provided by public infrastructure is measured. For example the GPI measures the value that people realize from the existence of streets and highways. 12. Household Infrastructure » Summary report » Technical report The GDP tells us that the more we spend on personal automobiles, dishwashers and other household infrastructure, the better off we are. The GPI attempts to measure the value of services from these items rather than the value of the items themselves. Alberta's GPI: 21 Social Indicators 13. Poverty » Summary report High levels of poverty, like high levels of income inequality erode social well-being. This summary assesses the trends in poverty in Alberta. 14. Income Distribution » Summary report The GDP is indifferent to how money and wealth distribution affect social cohesion. This GPI indicator takes a closer look at the growing gap between the top and bottom income groups in Alberta. 15. Unemployment » Summary report » Technical report The GPI accounts place value on free time, but recognizes that forced free time may be a social burden. This account examines unemployment in Alberta. 16. Under-employment » Summary report » Technical report This indicator examines part-time work and full-time work to gain a better understanding of how underemployment affects Albertans. 17. Paid Work » Summary report » Technical report This summary looks at trends in paid work in Alberta. 18. Household Work » Summary report » Technical report Unpaid household duties include domestic work (e.g., cleaning), parenting, eldercare, household management, shopping and transportation and travel related to these activities. The amount of time spent on household duties between 1961 and 2003 are analysed. gpi-ab99-18.pdf 19. Parenting and Eldercare » Summary report » Technical report The parenting and eldercare account investigates trends in time spent raising children and looking after aging parents and suggests reasons for its decline. gpi-ab99-19.pdf 20. Free time » Summary report » Technical report This indicator looks at how much free time Albertans have. Despite a rise is overall free time, studies show that women are increasingly stressed for time as they juggle work, family and household commitments. 21. Volunteerism » Summary report » Technical report The GDP measures only economic transactions that take place in the market and so does not account for volunteer work. Shifts from volunteerism to paid work is a false addition to the GDP as true social production has not changed. 22. Commuting » Summary report » Technical report According to the GDP, the more money people spend on getting to and from work the better off society is. The GPI, on the other hand calls this kind of spending 'regrettable' and accounts for it as a loss. 23. Life Expectancy » Summary report » Technical report Life expectancy is one of the key indicators of human health and wellness. The GPI accounts include various measures of health and wellness as proxies for health and well-being. 24. Premature Mortality » Summary report » Technical report Premature mortality is measured in terms of person years of life lost and is an important measure of human health and well-being. 25. Infant Mortality » Summary report » Technical report The Alberta GPI accounts give a brief evaluation of children's health, examining trends in infant mortality and low birth-weight babies. 26. Obesity » Summary report » Technical report Obesity is an increasingly important dimension of human health as more Albertans, Canadians and Americans are overweight. The GPI looks at the trend in obesity rates in Alberta. 27. Suicide » Summary report » Technical report The GPI accounts consider suicide a regrettable action and a social cost. This summary examines suicide rates in relation to economic growth with some disturbing observations. 28. Drug Use » Summary report » Technical report Drug use and the economy of the drug trade affects all of society through health costs, crime, financial stress and other negative impacts on social cohesion. This summary discusses the economic and social costs of drug use in Alberta. 29. Auto Crashes » Summary report » Technical report Auto crashes impose a significant cost to society. Expenditures related to automobile accidents increase the GDP. The GPI identifies such expenditures as 'regrettable'. 30. Divorce » Summary report » Technical report The number of marriages ending in divorce in Alberta are assessed. Increased divorce rates means that more children are experiencing their parents' separation and growing up in single parent homes. gpi-ab99-30.pdf 31. Crime » Summary report » Technical report The more crime we have, the more money we spend on home security systems, security guards, burglar alarms, policing, courts, corrections and other items. These expenses are counted as a positive addition to the GDP because it does not distinguish between expenditures that contribute to a society's well-being and those that do not. 32. Problem Gambling » Summary report » Technical report Is a rise in gambling expenditures a sign of an unhealthy society or a financially stressed society that seeks a 'get-rich-quick' solution. This indicator examines the question. 33. Voter Participation » Summary report » Technical report Voter participation is one measure of the health of democracy. This account examines several possible ways to measure the health of democracy and presents data on the trend in voter participation. 34. Educational Attainment » Summary report A rise in GDP would suggest that we are reaping the benefits of a more educated population, however the evidence of stagnant real wages and disposable income suggests that not everyone is sharing in the returns on knowledge investments. Alberta's GPI: 16 Environmental Indicators 35. Oilsands Reserve Life » Summary report Non-renewable energy resource extraction such as oilsands and coal have provided Alberta with enormous wealth. This summary assesses whether or not the use of these resources is sustainable. 36. Oil and Gas Reserve Life » Summary report As the GDP has grown exponentially in the past 40 years, so too has the drawing down of Alberta's non-renewable natural capital. Prudent accounting would treat the depreciation of a capital stock as a cost against income, but the GDP fails to do this. 37. Energy Use » Summary report » Technical report Energy use in Canada and Alberta are increasing steadily. This is especially true for the industry and transportation sectors. This summary assesses primary energy use in Alberta. EnergyUseInt_GHG_AirQual.pdf 38. Agriculture Sustainability » Summary report » Technical report Ever increasing inputs such as fertilizers and herbicides are contributing to an continuing decline in profits for farmers in Alberta. This summary looks at current agricultural practices and examines whether or not they are environmentally, socially or economically sustainable. 39. Timber Sustainability » Summary report » Technical report The timber sustainability summary uses 2 indices to asses the state of Alberta's timber capital against the GDP. 40. Forest Fragmentation » Summary report » Technical report The real impacts of forest fragmentation are only just beginning to be understood. In the meantime Alberta's forests continue to be fragmented. 41. Fish and Wildlife » Summary report » Technical report Many species in Alberta are at risk. This indicator examines economic growth and activities such as commercial and sport fishing as well as species at risk in Alberta. 42. Parks and Wilderness » Summary report » Technical report Loss of habitat is a major cause of species decline and protecting it is essential to preserve biodiversity. This study assess the state of Alberta's protected wilderness areas. 43. Wetlands » Summary report » Technical report In the GPI system of accounting, the loss of wetlands results in a loss of ecosystem function. The destruction of wetlands result in a societal cost. 44. Peatlands » Summary report » Technical report Peatlands play a vital ecological role as a filtration system for water. In addition they store massive amounts of carbon. The GPI Accounts apply a value to this service and count the loss peatlands as a cost. 45. Water Quality » Summary report » Technical report Although improvements have been made in Alberta's sewage treatment for municipal areas, source control regulations are vital to curb contaminants entering surface waters from storm sewers. This summary looks at the state of Alberta's water supply. 46. Air Quality » Summary report » Technical report Poor air quality can lead to premature deaths. This indicators examines trends in particulate matter and other sources of pollution in Alberta. 47. Greenhouse Gas » Summary report » Technical report As Alberta expands its extraction of natural gas and oilsands, it's global carbon footprint also grows. This summary estimates direct global warming and air pollution costs. 48. Carbon Budget » Summary report2005 The carbon content of fuels has taken on significant market and strategic value in recent years. Alberta's carbon deficit continues to grow as economic growth expands impacting not only Alberta, but the rest of the world. 49. Hazardous Waste » Summary report » Technical report Hazardous waste disposal costs Alberta businesses, taxpayers and governments millions of dollars every year. The GPI accounts identify these expenditures as 'regrettable' since in the absence of toxic waste these costs would not occur. 49.Hazardous-Waste.pdf 50. Landfill Waste » Summary report » Technical report Alberta has one of the highest per capita non-hazardous waste rates in Canada and waste management and environmental costs are significant. This summary assesses municipal and environmental costs for waste management in Alberta. 50.Landfill-Waste.pdf 51. Ecological Footprint » Summary report » Technical report The ecological footprint compliments other indicators of the GPI by providing a benchmark of sustainability for Alberta. Alberta's ecological footprint grew significantly between 1961 and 2003. 51.Ecological-Footprint.pdf