The Happy Planet Index 2.0

THE HAPPY PLANET INDEX 2.0
Why good lives don’t have to cost the Earth

nef is an independent think-and-do tank that inspires and demonstrates real economic well-being. We aim to improve quality of life by promoting innovative solutions that challenge mainstream thinking on economic, environmental and social issues. We work in partnership and put people and the planet first.www.happyplanetindex.org nef was awarded the International Society for Quality-of-Life Studies’ Award for the Betterment of the Human Condition 2007, in recognition of our work on the Happy Planet Index.

nef centres for:
global interdependence thriving communities well-being future economy

nef (the new economics foundation) is a registered charity founded in 1986 by the leaders of The Other EconomicSummit (TOES), which forced issues such as international debt onto the agenda of the G8 summit meetings. It has taken a lead in helping establish new coalitions and organisations such as the Jubilee 2000 debt campaign; the Ethical Trading Initiative; the UK Social Investment Forum; and new ways to measure social and economic well-being.

In an age of uncertainty, society globally needs a newcompass to set it on a path of real progress. The Happy Planet Index (HPI) provides that compass by measuring what truly matters to us – our well-being in terms of long, happy and meaningful lives – and what matters to the planet – our rate of resource consumption. It brings them together in a unique form which captures the ecological efficiency with which we are achieving good lives. This reportpresents results from the second global HPI. It shows that we are still far from achieving sustainable well-being, and puts forward a vision of what we need to do to get there.

Contents
Executive Summary 1 Introduction 2. Defining our goals – the HPI 3. The rise and fall of a foolish myth 4. Measurement matters 5. Components of the HPI 6. A happy planet? 7 Progress or regress? 8. Snapshots of ahappier planet 9. Tying together the threads of a happy planet Appendix 1: Composite indicators Appendix 2: Calculating the HPI Endnotes 3 7 10 14 19 21 27 34 39 45 52 52 55

Foreword
Some of us have for a long time been pointing out the anomalies, perversities, and irrelevancies of GDP accounting. Like the citizens in a Chesterton story who petitioned the local magistrate to close down a pub thatserved poisoned beer, our petition has met the official reply, ‘Yes, the evidence supports your case, but before we sacrifice historical continuity by tearing down this admittedly noxious establishment, you must specify exactly what should be put in its place.’ Well, ‘no beer’ is better than poison beer. But thanks to nef (the new economics foundation) we can now serve good beer, brewed withattention to health and sustainable production methods, as well as good taste. What are we trying to do, besides have a beer now and then? Live a long and good life. What must we spend to accomplish this? We must use the Earth’s limited resources and ecological carrying capacity in order to yield happy years of living. Economists like the concept of efficiency, and the Happy Planet Index is theultimate efficiency ratio – the final valuable output divided by the original scarce input. I hope economics faculties in universities will put some of their energy toward refining the measurement and application of this ratio, in the service of living well for a long future on a single planet.

Professor Herman Daly University of Maryland May 2009

The Happy Planet Index 2.0

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Executivesummary
In an age of uncertainty, society globally needs a new compass to set it on a path of real progress. The Happy Planet Index (HPI) provides that compass by measuring what truly matters to us – our well-being in terms of long, happy and meaningful lives – and what matters to the planet – our rate of resource consumption.
The HPI brings them together in a unique form which captures the...