Using 'Inclusive Wealth' to Measure and Model Sustainable Development in Australia: A working example

Australia in 1992 adopted the National Strategy for Ecologically Sustainable Development to ensure all future development occurs in a 'sustainable' manner. Measurement of the nation's sustainable development is currently conducted through the OECD Environmental Performance Review and various other ad-hoc indicators or measures have been proposed, such as greening the national accounts (Green Gross National Product) and the Genuine Progress Indicator. No one has identified a clear and precise way to either measure or model sustainable development in Australia. By trialing the implementation of inclusive wealth theory in Australia, this paper aims to identify and comment on the issues of measuring and modelling sustainable development as a stock measure in Australia (measuring the change in composition of national assets over time). Conceptual issues of implementation will be discussed with examples provided from two trial regions Goulburn Broken Catchment (VIC) and Murrumbidgee Valley (NSW).