We show that instantaneous increases in real NNP over time are an accurate indicator of true dynamic welfare improvements. This highlights a connection between the theory of green (or comprehensive) national income accounting and the theory of real price indices.
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Asheim, G.B., Weitzman, M.L. (2007). Does NNP Growth Indicate Welfare Improvement?. In: Justifying, Characterizing and Indicating Sustainability. Sustainability, Economics, and Natural Resources, vol 3. Springer, Dordrecht. https://doi.org/10.1007/978-1-4020-6200-1_17
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DOI: https://doi.org/10.1007/978-1-4020-6200-1_17
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