Genuine Progress Indicator vs GDP

This lecture discusses the Genuine Progress Indicator (GPI) as an alternative to Gross Domestic Product (GDP) to measure economic activity. The GPI accounts for environmental costs, aiming to provide a more sustainable and accurate reflection of progress. By correcting economic activity for environmental damages, it reveals that significant growth in GDP may come at the expense of environmental degradation, leading to no real progress in the long term. The instructor also explores the concept of valuing intangible aspects of the environment, such as the impact of microplastics in water, and the value of a human life in cost-benefit analyses for safety measures and disaster prevention.