Genuine progress indicator (GPI) is a metric that has been suggested to replace, or supplement, gross domestic product (GDP).[1] The GPI is designed to take fuller account of the well-being of a nation, only a part of which pertains to the size of the nation's economy, by incorporating environmental and social factors which are not measured by GDP. For instance, some models of GPI decrease in value when the poverty rate increases.[2] The GPI separates the concept of societal progress from economic growth.
The GPI is used in ecological economics, "green" economics, sustainability and more inclusive types of economics. It factors in environmental and carbon footprints that businesses produce or eliminate, including in the forms of resource depletion, pollution and long-term environmental damage.[2] GDP is increased twice when pollution is created, since it increases once upon creation (as a side-effect of some valuable process) and again when the pollution is cleaned up; in contrast, GPI counts the initial pollution as a loss rather than a gain, generally equal to the amount it will cost to clean up later plus the cost of any negative impact the pollution will have in the meantime. While quantifying costs and benefits of these environmental and social externalities is a difficult task, "Earthster-type databases could bring more precision and currency to GPI's metrics."[2] It has been noted that such data may also be embraced by those who attempt to "internalize externalities" by making companies pay the costs of the pollution they create (rather than having the government or society at large bear those costs) "by taxing their goods proportionally to their negative ecological and social impacts".[2]
GPI is an attempt to measure whether the environmental impact and social costs of economic production and consumption in a country are negative or positive factors in overall health and well-being. By accounting for the costs borne by the society as a whole to repair or control pollution and poverty, GPI balances GDP spending against external costs. GPI advocates claim that it can more reliably measure economic progress, as it distinguishes between the overall "shift in the 'value basis' of a product, adding its ecological impacts into the equation".[2]: Ch. 10.3 Comparatively speaking, the relationship between GDP and GPI is analogous to the relationship between the gross profit of a company and the net profit; the net profit is the gross profit minus the costs incurred, while the GPI is the GDP (value of all goods and services produced) minus the environmental and social costs. Accordingly, the GPI will be zero if the financial costs of poverty and pollution equal the financial gains in production of goods and services, all other factors being constant.
Genuineprogressindicator (GPI) is a metric that has been suggested to replace, or supplement, gross domestic product (GDP). The GPI is designed to take...
enhancing the traditional GNP. In 1995, Redefining Progress created the genuineprogressindicator (GPI) as an alternative to the traditional GNP. This...
economic progress Corruption Perceptions Index Democracy indices Fragile States Index Gender Inequality Index Gender Development Index Genuineprogress indicator...
of economic progress Disability-adjusted life year Economics Green national product Gender Development Index Genuineprogressindicator Happiness economics...
range of harmful effects of economic growth. It is similar to the genuineprogressindicator (GPI). The Index of Sustainable Economic Welfare (ISEW) is roughly...
comparable between countries and over time. The HDI is the most widely used indicator of human development and has changed how people view the concept. However...
A performance indicator or key performance indicator (KPI) is a type of performance measurement. KPIs evaluate the success of an organization or of a particular...
of dollar values. Alternative measures of economic progress, including the GenuineProgressIndicator, Gross National Happiness, and Gross National Well-being...
domestic product (Green GDP) Gender-related Development Index GenuineProgressIndicator (GPI) Global Peace Index Gross National Happiness Gross National...
Multidimensional Poverty Indices use a range of indicators to calculate a summary poverty figure for a given population, in which a larger figure indicates...
Analysis Repor. Retrieved 17 February 2014. "Gender Equality in the GenuineProgress Index" (PDF). GPI Atlantic. October 1999. Retrieved 17 February 2014...
measures of economic progress Disability-adjusted life year Economics Full cost accounting Gender Parity Index GenuineProgressIndicator (GPI) Global Peace...
social progress has been advocated by varying realms of political ideologies with different theories on how it is to be achieved. Specific indicators for...
"What's wrong with the GDP?", The Genuineprogressindicator: Summary of Data and Methodology, Redefining Progress C1995 Whether output and CPI inflation...
measurement of government and economic performance including the 'GenuineProgressIndicator' (GPI), the 'Wellbeing Manifesto', and the state of Australian...
(India) Homeless Vulnerability Index Misery index (economics) Gini coefficient Genuineprogressindicator (GPI) Legatum Prosperity Index Poverty gap index...
response, alternative measures have been proposed such as the GenuineProgressIndicator (GPI) and the Index of Sustainable Welfare - ISEW. MONU - magazine...
performances, tracking progress, and evaluating process, among others. For the purposes of building sustainability indicators, frameworks can be developed...
domestic product (Green GDP) Gender-related Development Index GenuineProgressIndicator (GPI) Global Peace Index Gross National Happiness Gross National...
prevent environmental damage. Defensive costs form part of the genuineprogressindicator (GPI) calculations. Labour costs would include travel time, holiday...
assessment (environmental equality social) ISO 26000 ISO 45001 Genuineprogressindicator Performance indicator SA8000 Social return on investment Whole-life cost...
GPI may refer to: Gender Parity Index Genuineprogressindicator Global Payments Innovation, a faster international payment service by SWIFT George Padmore...
of natural and environmental resources or as an indicator of sustainability. Genuineprogressindicator (GPI) Hartwick's rule Net domestic product Value...
Degrowth Economic efficiency Economic growth Measuring well-being Genuineprogressindicator Moral purchasing Human development theory Ecological economics...