Date: 2024-07-17 Page is: DBtxt003.php txt00010461
Metrics
GPI ... Genuine Progress Indicator
Components of the Genuine Progress Indicator
Burgess COMMENTARY
Peter Burgess
Components of the Genuine Progress Indicator
The Genuine Progress Indicator is measured by 26 indicators which can be divided into three main categories: Economic, Environmental and Social.
Some regions, nations or states may adjust the verbiage slightly to accommodate their particular scenario. For example, the GPI template uses the phrase 'Carbon Dioxide Emissions Damage' whereas the state of Maryland uses 'Cost of Climate Change'[13] because it also accounts for other greenhouse gases (GHG) such as methane and nitrous oxide.
| +/- | Indicator | Brief Explanation |
| Economic | ||
| + | Personal Consumption Expenditures | The bulk of GDP as well, consumption informs the baseline from which the rest of the indicators will be added or subtracted. |
| ÷ | Income Inequality | Using the Gini index, published by World Bank, and the Income Distribution Index (IDI), it’s relative change over time. |
| (PCE/IDI)*100 | Adjusted Personal Consumption | Formula=(Personal consumption/IDI) x 100. Forms the base number from which the remaining indicators are added or subtracted. |
| - | Cost of Consumer Durables | Calculated as a cost to avoid double counting the value provided by the durables themselves. |
| + | Value of Consumer Durables | Household appliances, cars, etc. are not used up in one year and are considered a part of household capital. Their value is depreciated over a number of years. |
| - | Cost of Underemployment | Encompasses the chronically unemployed, discouraged workers, involuntary part-time workers and others with work-life restraints (lack of childcare or transportation). |
| +/- | Net Capital Investment | Capital investment in foreign markets minus incoming investments from other countries. If lending (+) if borrowing (-). |
| Environmental | ||
| - | Cost of Water Pollution | Damage to water quality from things such as chemicals or nutrients, and the costs of erosion/sedimentation in waterways. |
| - | Cost of Air Pollution | Includes damage to vegetation, degradation of materials, cost of clean-up from soot or acid rain, and resulting reduced property values, wage differentials and aesthetics. |
| - | Cost of Noise Pollution | Noise from traffic and factories can cause hearing loss and sleep deprivation. |
| - | Loss of Wetlands | Valuates the services given up when wetlands are lost to development i.e. buffering of weather, habitat, water purification. |
| - | Loss of Farmland, Soil Quality or Degradation Due to urbanization, soil erosion and compaction. | This indicator is measured cumulatively to account for all years of production lost as it compromises self-sufficient food supply. |
| - | Loss of Primary Forest and damage from logging roads | Loss of biodiversity, soil quality, water purification, carbon sequestration, recreation etc. Cumulative affect year over year. |
| - | CO2 Emissions | Increases in severe weather is causing billions in damages. A value of $93USD/metric ton of CO2 emitted is used, based on a meta-analysis study by Richard Tol (2005) of 103 separate studies of costs of economic damages. |
| - | Cost of Ozone Depletion | Our protective layer in the atmosphere. Depletion can lead to increased cases of cancer, cataracts and plant decline. Weighed at $49,669USD/ton |
| - | Depletion of Non-Renewables | These cannot be renewed in a lifetime. Depletion is measured against cost of implementing and substituting with renewable resources. |
| Social | ||
| + | Value of Housework and Parenting | Child care, repairs and maintenance are valued equivalent to the amount a household would have to pay for the service. |
| - | Cost of Family Changes | Social dysfunction presents itself early in family life. Care is taken to avoid double counting goods and services duplicated due to split-parent households. |
| - | Cost of Crime | Medical expenses, property damages, psychological care and security measures to prevent crime are all included in this indicator. |
| - | Cost of Household Pollution | Abatement Cost to residents to clean the air and water in their own household i.e. air and water filters. |
| + | Value of Volunteer Work | Valued as a contribution to social welfare. Neighborhoods and communities can find an informal safety net through their peers and volunteer work. |
| - | Loss of Leisure Time | Compared to 1969 hours of leisure. Recognizes that increased output of goods and services can lead to loss of valuable leisure time for family, chores or otherwise. |
| + | Value of Higher Education | Accounts for the contribution resulting knowledge, productivity, civic engagement, savings, and health; a 'social spillover,' set to $16,000 per year. |
| + | Value of Highways and Streets | Annual value of services contributed from the use of streets & highways. Valued at 7.5% of net stock of local, state and federal highways. |
| - | Cost of Commuting | Money spent to pay for the transportation and time lost in transit as opposed to other more enjoyable activities. |
| - | Cost of Auto Accidents | Damage and loss as a result of traffic accidents. Increased traffic densities are a direct result of industrialization and wealth accumulation. Development in the United States[edit] |