Abstract
In economic policy, in the media and, alas, also in some economic literature, the increase in production as measured in national income (or Gross National Product, GNP) is called economic growth, is identified with increase in welfare and is conceived as the indicator for economic success. Defining production growth as economic growth means defining economics as production. Such a definition excludes, among other things, the scarce environment from economics. Defined in this manner, economic growth obtains the highest priority in the economic policy of all countries1. At the same time we see all over the world growth of national income in accordance with the present pattern being accompanied by the destruction of the most fundamental scarce and, consequently, economic good at man’s disposal; the environment.
R. Hueting is head of the Department for Environmental Statistics, Netherlands Central Bureau of Statistics. An earlier draft of this chapter was prepared as a paper for the Conference on Ecological Economics of Sustainability held in Washington, D.C., May 21–23, 1990.
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Hueting, R. (1992). Correcting National Income for Environmental Losses: a practical solution for a theoretical dilemma. In: Krabbe, J.J., Heijman, W.J.M. (eds) National Income and Nature: Externalities, Growth and Steady State. Economy & Environment, vol 5. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-2590-1_3
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DOI: https://doi.org/10.1007/978-94-011-2590-1_3
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