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Erschienen in: Social Indicators Research 3/2008

01.02.2008

Environmentally Responsible Happy Nation Index: Towards an Internationally Acceptable National Success Indicator

verfasst von: Yew-Kwang Ng

Erschienen in: Social Indicators Research | Ausgabe 3/2008

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Abstract

Amidst increasing attention to happiness studies by economists, the New Economics Foundation launched in July 2006 the Happy Planet Index (Marks et al. 2006). This is the ratio of the average happy life years (HLY) to the per capita ecological footprint of the country concerned. HLY is in turn the product of the average happiness (or life satisfaction) index and the life expectancy index. Some essential revisions to this index are proposed to reach an internationally acceptable national success indicator that aims positively at long and happy lives but negatively at the external costs of environmental disruption. Hopefully, this ‘environmentally responsible happy nation index’ will lead to some re-orientation of both the market and national governments towards something more fundamentally valuable.

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Fußnoten
1
In China, similar thinking was recorded around the similar period, i.e. 3–4 centuries B.C.
 
2
It is true that philosophers are not in consensus about whether what Aristotle meant by happiness is the same as the psychological happiness used by virtually all happiness researchers; Aristotle and some later philosophers may require some element of virtue for true happiness (see, e.g. Haybron 2000). However, I strongly believe that (1) virtually 99% of the lay public take happiness to be psychological happiness, and (2) ultimately speaking, virtue is the contribution to future and/or others’ happiness anyway. Elsewhere, I discuss this and related issues such as the difference between happiness and life satisfaction elsewhere (Ng 2007). Here, these issues are abstracted away.
 
3
These two terms are used interchangeably here. In everyday usage, happiness probably refers to current situation while welfare refers to the long-term. For any given time period, the two are the same. If I am very happy over a certain period, my welfare over that period must be high. On the other hand, ‘utility’ which represents ‘preference’ may differ from happiness due to ignorance (including imperfect foresight), a concern for the welfare of others, and imperfect rationality; see Ng (1999).
 
4
Only some brief statements are made here. A fuller argument on this is in Ng and Ho (2006) where it is also argued that happiness should be preferred over others such as life satisfaction.
 
5
See Ng (2000, 2007) for a more detailed argument for happiness as the ultimate objective.
 
6
Some researchers even question the relevance of the VNM indices for subjective utility/welfare. However, the relevance is established in Ng (1984).
 
7
There are of course alternative proposals to deal with the difficulty, e.g. Stone et al. (1999) favour the use of momentary assessment and Larsen and Fredrickson (1999) favour the use of multiple measures.
 
8
As pointed out to me by James Mirrlees, the HPI also ignores the accumulation of capital (we may also add ‘contribution to knowledge’). For our proposed measure discussed below, we could either specifically adjust for this or include capital accumulation and contribution to knowledge as generating (positive) external benefits on others (including the future) which may be subtracted from external costs.
 
9
A possible issue is whether the equality in happiness should be taken into account. In my view, inequality in income is undesirable both because of the diminishing marginal utility of income and because of the indirect undesirable effects of inequality in reducing happiness through for example reducing social cohesion. However, since happiness is already the ultimate objective, we can neither have diminishing marginal happiness of happiness nor further indirect effects, except in an intertemporal framework where the happiness in the future has not yet been accounted for. (Either accounting for this intertemporal effect or ignoring it, an objective function that is not linear in individual happiness can be shown to violate some compelling axiom, i.e. treating a perceptible increment of happiness as less important than a less than a perceptible one; see Ng 1984.) Moreover, the argument for the utilitarian social welfare function (Ng 2000, ch. 5) supports not taking into account inequality in the ultimate objective. Also, Ott (2005) shows that higher average happiness tends to go with higher equality in happiness.
 
10
This equation does not apply strictly to the global and regional average figures due to slight differences obtained through different routes of averaging.
 
11
This average is calculated from the weighted average of the ERHNI of the various nations. If we calculate the ERHNI of the world based on the average figures of the global average values of Life Satisfaction, etc., the figure will be somewhat different due to the well-known difference of different routes of averaging.
 
12
The estimation of course need not start with China. Then, the various adjustment factors will be correspondingly different.
 
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Metadaten
Titel
Environmentally Responsible Happy Nation Index: Towards an Internationally Acceptable National Success Indicator
verfasst von
Yew-Kwang Ng
Publikationsdatum
01.02.2008
Verlag
Springer Netherlands
Erschienen in
Social Indicators Research / Ausgabe 3/2008
Print ISSN: 0303-8300
Elektronische ISSN: 1573-0921
DOI
https://doi.org/10.1007/s11205-007-9135-1

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