Happy Planet Index
Encyclopedia
The Happy Planet Index is an index
of human well-being and environmental impact that was introduced by the New Economics Foundation
(NEF) in July 2006. The index is designed to challenge well-established indices of countries’ development, such as Gross Domestic Product
(GDP) and the Human Development Index
(HDI), which are seen as not taking sustainability
into account. In particular, GDP is seen as inappropriate, as the usual ultimate aim of most people is not to be rich, but to be happy
and healthy. Furthermore, it is believed that the notion of sustainable development requires a measure of the environmental costs of pursuing those goals.
per capita, which attempts to estimate the amount of natural resources required to sustain a given country's lifestyle. A country with a large per capita ecological footprint uses more than its fair share of resources, both by drawing resources from other countries, and also by causing permanent damage to the planet which will impact future generations.
As such, the HPI is not a measure of which are the happiest countries in the world. Countries with relatively high levels of life satisfaction, as measured in surveys, are found from the very top (Colombia
in 6th place) to the very bottom (the USA in 114th place) of the rank order. The HPI is best conceived as a measure of the environmental efficiency of supporting well-being in a given country. Such efficiency could emerge in a country with a medium environmental impact (e.g. Costa Rica
) and very high well-being, but it could also emerge in a country with only mediocre well-being, but very low environmental impact (e.g. Vietnam
).
Each country’s HPI value is a function of its average subjective life satisfaction, life expectancy
at birth, and ecological footprint
per capita. The exact function is a little more complex, but conceptually it approximates multiplying life satisfaction and life expectancy, and dividing that by the ecological footprint. Most of the life satisfaction data is taken from the World Values Survey
and World Database of Happiness, but some is drawn from other surveys, and some is estimated using statistical regression
techniques.
178 countries were surveyed in 2006, compared to 143 in 2009. The best scoring country in 2009 was Costa Rica
, followed by the Dominican Republic
, Jamaica
, Guatemala
and Vietnam
, with Tanzania
, Botswana
and Zimbabwe
featuring at the bottom of the list.
).
Aside from that, criticism has focused on the following:
Nevertheless, the HPI and its subcomponents have been considered in political circles. The Ecological Footprint, championed by the WWF
, is widely used by both local and national governments, as well as supranational organisations such as the European Commission
. The HPI itself was recently cited in the British Conservative Party
as a possible substitute for GDP,. A recent review of progress indicators produced by the European Parliament
, lists the following pros and cons to using the HPI as a measure of national progress:
Pros:
Cons:
Index (economics)
In economics and finance, an index is a statistical measure of changes in a representative group of individual data points. These data may be derived from any number of sources, including company performance, prices, productivity, and employment. Economic indices track economic health from...
of human well-being and environmental impact that was introduced by the New Economics Foundation
New Economics Foundation
The New Economics Foundation is a British think-tank.NEF was founded in 1986 by the leaders of The Other Economic Summit with the aim of working for a "new model of wealth creation, based on equality, diversity and economic stability"....
(NEF) in July 2006. The index is designed to challenge well-established indices of countries’ development, such as Gross Domestic Product
Gross domestic product
Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....
(GDP) and the Human Development Index
Human Development Index
The Human Development Index is a composite statistic used to rank countries by level of "human development" and separate "very high human development", "high human development", "medium human development", and "low human development" countries...
(HDI), which are seen as not taking sustainability
Sustainability
Sustainability is the capacity to endure. For humans, sustainability is the long-term maintenance of well being, which has environmental, economic, and social dimensions, and encompasses the concept of union, an interdependent relationship and mutual responsible position with all living and non...
into account. In particular, GDP is seen as inappropriate, as the usual ultimate aim of most people is not to be rich, but to be happy
Happiness
Happiness is a mental state of well-being characterized by positive emotions ranging from contentment to intense joy. A variety of biological, psychological, religious, and philosophical approaches have striven to define happiness and identify its sources....
and healthy. Furthermore, it is believed that the notion of sustainable development requires a measure of the environmental costs of pursuing those goals.
Outline
The HPI is based on general utilitarian principles — that most people want to live long and fulfilling lives, and the country which is doing the best is the one that allows its citizens to do so, whilst avoiding infringing on the opportunity of future people and people in other countries to do the same. In effect it operationalises the IUCN's (World Conservation Union) call for a metric capable of measuring 'the production of human well-being (not necessarily material goods) per unit of extraction of or imposition upon nature'. Human well-being is operationalised as Happy Life Years. Extraction of or imposition upon nature is proxied for using the ecological footprintEcological footprint
The ecological footprint is a measure of human demand on the Earth's ecosystems. It is a standardized measure of demand for natural capital that may be contrasted with the planet's ecological capacity to regenerate. It represents the amount of biologically productive land and sea area necessary to...
per capita, which attempts to estimate the amount of natural resources required to sustain a given country's lifestyle. A country with a large per capita ecological footprint uses more than its fair share of resources, both by drawing resources from other countries, and also by causing permanent damage to the planet which will impact future generations.
As such, the HPI is not a measure of which are the happiest countries in the world. Countries with relatively high levels of life satisfaction, as measured in surveys, are found from the very top (Colombia
Colombia
Colombia, officially the Republic of Colombia , is a unitary constitutional republic comprising thirty-two departments. The country is located in northwestern South America, bordered to the east by Venezuela and Brazil; to the south by Ecuador and Peru; to the north by the Caribbean Sea; to the...
in 6th place) to the very bottom (the USA in 114th place) of the rank order. The HPI is best conceived as a measure of the environmental efficiency of supporting well-being in a given country. Such efficiency could emerge in a country with a medium environmental impact (e.g. Costa Rica
Costa Rica
Costa Rica , officially the Republic of Costa Rica is a multilingual, multiethnic and multicultural country in Central America, bordered by Nicaragua to the north, Panama to the southeast, the Pacific Ocean to the west and the Caribbean Sea to the east....
) and very high well-being, but it could also emerge in a country with only mediocre well-being, but very low environmental impact (e.g. Vietnam
Vietnam
Vietnam – sometimes spelled Viet Nam , officially the Socialist Republic of Vietnam – is the easternmost country on the Indochina Peninsula in Southeast Asia. It is bordered by China to the north, Laos to the northwest, Cambodia to the southwest, and the South China Sea –...
).
Each country’s HPI value is a function of its average subjective life satisfaction, life expectancy
Life expectancy
Life expectancy is the expected number of years of life remaining at a given age. It is denoted by ex, which means the average number of subsequent years of life for someone now aged x, according to a particular mortality experience...
at birth, and ecological footprint
Ecological footprint
The ecological footprint is a measure of human demand on the Earth's ecosystems. It is a standardized measure of demand for natural capital that may be contrasted with the planet's ecological capacity to regenerate. It represents the amount of biologically productive land and sea area necessary to...
per capita. The exact function is a little more complex, but conceptually it approximates multiplying life satisfaction and life expectancy, and dividing that by the ecological footprint. Most of the life satisfaction data is taken from the World Values Survey
World Values Survey
The World Values Survey is a global research project that explores people’s values and beliefs, how they change over time and what social and political impact they have. It is carried out by a worldwide network of social scientists who, since 1981, have conducted representative national surveys in...
and World Database of Happiness, but some is drawn from other surveys, and some is estimated using statistical regression
Regression analysis
In statistics, regression analysis includes many techniques for modeling and analyzing several variables, when the focus is on the relationship between a dependent variable and one or more independent variables...
techniques.
178 countries were surveyed in 2006, compared to 143 in 2009. The best scoring country in 2009 was Costa Rica
Costa Rica
Costa Rica , officially the Republic of Costa Rica is a multilingual, multiethnic and multicultural country in Central America, bordered by Nicaragua to the north, Panama to the southeast, the Pacific Ocean to the west and the Caribbean Sea to the east....
, followed by the Dominican Republic
Dominican Republic
The Dominican Republic is a nation on the island of La Hispaniola, part of the Greater Antilles archipelago in the Caribbean region. The western third of the island is occupied by the nation of Haiti, making Hispaniola one of two Caribbean islands that are shared by two countries...
, Jamaica
Jamaica
Jamaica is an island nation of the Greater Antilles, in length, up to in width and 10,990 square kilometres in area. It is situated in the Caribbean Sea, about south of Cuba, and west of Hispaniola, the island harbouring the nation-states Haiti and the Dominican Republic...
, Guatemala
Guatemala
Guatemala is a country in Central America bordered by Mexico to the north and west, the Pacific Ocean to the southwest, Belize to the northeast, the Caribbean to the east, and Honduras and El Salvador to the southeast...
and Vietnam
Vietnam
Vietnam – sometimes spelled Viet Nam , officially the Socialist Republic of Vietnam – is the easternmost country on the Indochina Peninsula in Southeast Asia. It is bordered by China to the north, Laos to the northwest, Cambodia to the southwest, and the South China Sea –...
, with Tanzania
Tanzania
The United Republic of Tanzania is a country in East Africa bordered by Kenya and Uganda to the north, Rwanda, Burundi, and the Democratic Republic of the Congo to the west, and Zambia, Malawi, and Mozambique to the south. The country's eastern borders lie on the Indian Ocean.Tanzania is a state...
, Botswana
Botswana
Botswana, officially the Republic of Botswana , is a landlocked country located in Southern Africa. The citizens are referred to as "Batswana" . Formerly the British protectorate of Bechuanaland, Botswana adopted its new name after becoming independent within the Commonwealth on 30 September 1966...
and Zimbabwe
Zimbabwe
Zimbabwe is a landlocked country located in the southern part of the African continent, between the Zambezi and Limpopo rivers. It is bordered by South Africa to the south, Botswana to the southwest, Zambia and a tip of Namibia to the northwest and Mozambique to the east. Zimbabwe has three...
featuring at the bottom of the list.
International rankings
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Views
Much criticism of the index has been due to commentators falsely understanding it to be a measure of happiness, when it is in fact a measure of the ecological efficiency of supporting well-being (see, for example, the following blogs in Heavy Lifting and SpikedSpiked (magazine)
Spiked is a British Internet magazine focusing on politics, culture and society from a humanist and libertarian viewpoint.- Editors and contributors :...
).
Aside from that, criticism has focused on the following:
- That the HPI completely ignores issues like political freedom, human rights and labor rights.
- That the World Values SurveyWorld Values SurveyThe World Values Survey is a global research project that explores people’s values and beliefs, how they change over time and what social and political impact they have. It is carried out by a worldwide network of social scientists who, since 1981, have conducted representative national surveys in...
covers only a minority of the world's nations and is only done every five years. As a result, much of the data for the index must come from other sources, or is estimated using regressions. - General suspicion of subjective measures of well-being.
- That the Ecological FootprintEcological footprintThe ecological footprint is a measure of human demand on the Earth's ecosystems. It is a standardized measure of demand for natural capital that may be contrasted with the planet's ecological capacity to regenerate. It represents the amount of biologically productive land and sea area necessary to...
is a controversial concept with many criticisms.
Nevertheless, the HPI and its subcomponents have been considered in political circles. The Ecological Footprint, championed by the WWF
World Wide Fund for Nature
The World Wide Fund for Nature is an international non-governmental organization working on issues regarding the conservation, research and restoration of the environment, formerly named the World Wildlife Fund, which remains its official name in Canada and the United States...
, is widely used by both local and national governments, as well as supranational organisations such as the European Commission
European Commission
The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union....
. The HPI itself was recently cited in the British Conservative Party
Conservative Party (UK)
The Conservative Party, formally the Conservative and Unionist Party, is a centre-right political party in the United Kingdom that adheres to the philosophies of conservatism and British unionism. It is the largest political party in the UK, and is currently the largest single party in the House...
as a possible substitute for GDP,. A recent review of progress indicators produced by the European Parliament
European Parliament
The European Parliament is the directly elected parliamentary institution of the European Union . Together with the Council of the European Union and the Commission, it exercises the legislative function of the EU and it has been described as one of the most powerful legislatures in the world...
, lists the following pros and cons to using the HPI as a measure of national progress:
Pros:
- Considers the actual ‘ends’ of economic activity in the form of life satisfaction and longevity
- Combines wellbeing and environmental aspects
- Simple and easily understandable scheme for calculating the index
- Comparability of results (‘EF’ and ‘life expectancy’ can be applied to different countries)
- Data online available, although some data gaps remain
- Mixture of ‘soft’ and ‘hard’ criteria; takes into account people’s well-being and resource use of countries
Cons:
- ‘Happiness’ or ‘life satisfaction’ are very subjective and personal: cultural influences and complex impact of policies on happiness
- Confusion of name: index is not a measure of happiness but rather measure of environmental efficiency of supporting well-being in a given country
See also
- Genuine Progress IndicatorGenuine Progress IndicatorThe genuine progress indicator is an alternative metric system which is an addition to the national system of accounts that has been suggested to replace, or supplement, gross domestic product as a metric of economic growth...
- Global Peace IndexGlobal Peace IndexThe Global Peace Index is an attempt to measure the relative position of nations' and regions' peacefulness. It is the product of Institute for Economics and Peace and developed in consultation with an international panel of peace experts from peace institutes and think tanks with data collected...
- Gross national happinessGross national happinessThe assessment of gross national happiness was designed in an attempt to define an indicator that measures quality of life or social progress in more holistic and psychological terms than only the economic indicator of gross domestic product .-Origins and meaning:The term...
- Legatum Prosperity IndexLegatum Prosperity IndexThe Legatum Prosperity Index is an annual ranking developed by the Legatum Institute of 110 countries. The ranking is based according to a variety of factors including wealth, economic growth, personal wellbeing, and quality of life. Norway topped the lists of the the last two reports, those of...
- Satisfaction with Life IndexSatisfaction with Life IndexThe Satisfaction with Life Index was created by Adrian G. White, an Analytic Social Psychologist at the University of Leicester, using data from a metastudy. It is an attempt to show life satisfaction in different nations....