The true achievement of sustainable development must focus on human well-being. When we talk about human well-being, we cannot only talk about today. The definition of human well-being – and, indeed, our efforts to achieve it – must entail the wellbeing of future generations.
Studies on sustainable development performance evaluate societal change over time. To be complete, these studies must effectively evaluate a society’s productive base.
Wealth is the social worth of an economy’s assets: reproducible capital; human capital; knowledge; natural capital; population; institutions; and time.Shadow prices are key to understanding inclusive wealth.
The shadow price for many market-traded goods is the market price, but these should be used with caution as many prices do not take account of externalities.