Md. Adopts 'Greener' Measure Of Md. Living Standard With UMD Expertise

Here’s some more background on the story you posted this morning about the “GPI” --

Governor O’Malley – with the help of UM researchers – launched a greener, more accurate measure of Maryland’s prosperity today to supplement the standard state economic measure (Gross State Product). The idea is to get a better handle on the actual standard of living experienced by Marylanders.

The UM researchers found that the two measures yield very different assessments of the state's economic condition (the researchers coordinated with a working group of state officials and did the technical work): In 2000, the standard measure made Maryland appear more than 50 percent more wealthy than the new measure, yet probably didn’t reflect conditions on the ground as experienced by the average Joe. Both the governor and our researcher indicate that this will be a useful tool in steering policy decisions.

Here’s how the UMD researcher (Matthias Ruth) puts it:

“With measures at hand that show us not only the impacts of policy and investments on the economy but also the costs of those policies and investments to society, we may have moved more rapidly towards sustainable practices - may have invested more in communities that hold together, rather than roads that spread us apart, we may have invested more in local jobs rather than an economy that moves them to far-flung places on this globe, and we may have invested more in energy technology that harnesses local, renewable resources like wind and solar, instead of burning nonrenewable fossil fuels, creating local air pollution and contributing to climate change.”

UMD’s Matthias Ruth can explain the differences (see contact information and details below). Also, the new measure is based on pioneering work done by Ruth’s Maryland colleague Herman Daly, a prominent and “maverick” ecological economist.

Maryland is only third state to do this, and none have done it so comprehensively.

I’ve got some background below. And here’s a link to the Governor’s release.
http://www.governor.maryland.gov/pressreleases/100203.asp

Neil

Neil Tickner
University of Maryland Communications