The Real Net National Product in Sustainable Development
Haradhan Kumar Mohajan
Abstract
This paper is related to social welfare and
sustainability. The real NNP represents the maximized
value of flow of goods and services that are produced by
the productive assets of the society. It is important to
investigate whether the concept of NNP can serve as an
indicator of sustainability. In this paper an attempt
has been taken to clarify this with theoretical
calculations. The instantaneous increases in real NNP
over time are an accurate indicator of true welfare
improvements. The paper shows that welfare is increasing
instantaneously over time if and only if real NNP is
increasing instantaneously over time. It is also shown
the relation between the Divisia index of real
consumption prices and dynamic welfare evaluation. The
paper emphasizes on optimal growth and growth without
optimality, and is examined sustainability in these two
cases.
JEL. Classification: B22; O11
Keywords: Real NNP, Dynamic welfare, Social Welfare and Sustainability
