Quantifying environmental sustainability using an aggregate index reflecting increasing marginal damage costs

In an environmental economics context increasing marginal damage costs are usually assumed, and a methodology for calculating a sustainability index in accordance with this assumption is presented. The aggregate index is constructed from an n-element vector including the values of the (n) subset indicators, and the length of this vector in Euclidian space is perceived as an alternative measurement scale. Increasing values for any of the elements in the vector will influence the total result more than proportionately and hence in accordance with an assumption of increasing marginal damage costs.