Measurement of Sustainability Indicators and Implications for Macroeconomic Policy Modelling in Developing Countries

This paper reviews sustainability concepts and measures sustainability indicators in the context of a least developed country Nepal, and a developing country Thailand in order to judge the economy's performance with the use of natural resources and the environment. In both the country cases, natural resource scarcity is increasing, environmental quality is deteriorating, and the domestic resource gap is increasing. A conceptual framework is developed for linking corrected sustainable income with conventional GDP for Nepal. Finally, implications for macroeconomic policy modelling using sustainability indicators are discussed