Measuring Inclusive Green Growth at the Country Level

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February 2016
Ulf Narloch, Tomasz Kozluk, Ainsley Lloyd
Green Growth Knowledge Platform (GGKP)

Inclusive green growth (IGG) combines economic, social and environmental dimensions, which increases the complexity of measurement and monitoring. No single indicator is enough to track progress towards IGG and there is unlikely to be a standardized, “one-size-fits-all” solution. Countries may hence choose different measurement approaches and indicators, depending on their priorities and capacities. 

This paper, produced through the GGKP Research Committee on Measurement and Indicators aims to improve the understanding of tools available for measuring IGG. It explore four approaches to measure IGG: a dashboard of indicators, composite indicators, environmental footprints, and “adjusted” economic measures. Moreover, it outlines main measurement themes and aspects relevant for IGG (natural assets, resource efficiency and decoupling, resilience and risks, economic opportunities and efforts, and inclusiveness); it reviews measurement approaches and indicators available for tracking progress towards IGG; and it identifies the main gaps where investments research, indicator development and data collection are needed.

Key gaps identified include: (i) economic values of stocks and flows of natural assets; (ii) qualitative dimensions of natural assets; (iii) sustainable use or extraction of natural assets; (iv) combining micro-level economic and environmental data; (v) resilience of socioeconomic systems to ecological shocks; (vi) tracking of employment effects, investment and other economic effects, in particular on the opportunities side; (vii) aggregate impacts of environmental policies; and (viii) distributional impacts of environmental changes and policies. Based on the stocktaking and gap analysis, the paper calls for mobilizing investment for better indicator development and data collection.