Measures of environmental and sustainable socioeconomic welfare and the political economy of capitalism - theoretical reconstruction, technical specification, and critical analysis: GDP, ISEW and GPI

This study undertakes a critical analysis of measures of environmental and sustainable socioeconomic welfare from the perspective of political economy. One of the prime motivations for such an inquiry is that Gross Domestic Product (GDP) provides an inadequate measure of social and ecological waste in the economic system. Good measures with solid theory (or theories) can offer vital insights where there may be conflict between the various spheres of economy, society and ecology. The inquiry centres on measures that may be referred to as 'Net Income Indices' or Sustainable Economic Welfare Indicators (SEWls), since they are designed for assessing aspects of sustainability and welfare. Commencing in 1972 and ending in April 2009, there have been forty-five individual studies involving construction of a SEWI. SEWls are worthy of a comprehensive appraisal as it is generally accepted that the indices are necessary, workable and adequate measures. This study embarks on a systematic, detailed and scholarly examination of the conclusions drawn in the relevant literature on SEWls, focusing on the calibre of their theoretical, empirical and technical foundations, historical specificity vis-a-vis business cycles and institutional dynamics.