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Towards a sustainable wellbeing economy: integrated policies and transformative indicators

Periodic Reporting for period 1 - ToBe (Towards a sustainable wellbeing economy: integrated policies and transformative indicators)

Reporting period: 2023-03-01 to 2024-02-29

In the current socio-economic climate, there is an urgent need to measure and assess policy guides and paths to an inclusive sustainable wellbeing economy, including ecological outcomes and historical trends. Ample scientific evidence exists that economic growth is risking the foundation of sustainable wellbeing. Success should not be measured by gross domestic product (GDP) only. ToBe project looks beyond GDP to build an understanding of a sustainable well-being economy by developing integrated policies and transformative indicators. To contribute to the theoretical and empirical knowledge in the field of sustainability transformation, the project brings together researchers, policymakers and citizens in Europe, Africa and South America. The aim of the interdisciplinary consortium, where many SSH scholars are involved, is to study how mindsets, indicators, innovations and policies could better work together towards the sustainability paradigm. ToBe thus seeks to support the EU vision of becoming the first climate-neutral continent with the implementation of sustainable development goals.
ToBe project is progressing well, and it has reached all its planned milestones during the 1st reporting period. Key insights developed in the project during the first year have been published as a first ToBe Policy brief, titled ‘Time ToBe Transformative”.

In WP1 (Theories and indicators for the transformation towards a ‘sustainability paradigm’), led by Tampere University, we have together with all partners outlined a theoretical understanding of sustainable wellbeing consisting of three universal human needs: health, relatedness, and autonomy. This notion of sustainable wellbeing shows how wellbeing is multidimensional and cannot be measured with one indicator only. We have emphasized the importance of sufficiency because sustainable wellbeing requires a balance between poverty and excess. We have also studied both empirically and conceptually what is the role of changing policy goals and mindsets in transformation. For understanding the role of indicators in the transformation, we have developed novel criteria that can be used when trying to evaluate what alternative indicator initiatives support the transformation towards sustainable wellbeing.

In WP2 (Empirical analysis of different processes of economic growth), led by Stockholm University, we have collected quantitative data both in Europe and in African countries to start analysing the relationship between economic growth and its social and environmental implications. The collected data includes all the data necessary to construct two Indexes of Sustainable Economic Welfare (ISEW) for the 27 EU countries individually and for the EU27 as a whole. We have already produced new knowledge on carbon taxes, redistribution, and attitudes. The comparative analysis of 26 European countries indicates that the welfare state protects households from relative income poverty due to environmental taxes. It also suggests that both social insurance and social assistance play important roles in reducing poverty among different households who are facing environmental taxes.

WP3 (Identifying innovative policy options and understanding processes of change), led by VTT, has carried out both a desk study and qualitative empirical research on alternative growth initiatives in Europe, South America and South Africa to better understand what the drivers and barriers to implementation are. We started the work by reviewing the literature and building a conceptual framework for alternative growth initiatives. We then carried out preliminary interviews and field observations in in Ecuador and in several Global North countries to start analysing what are the drivers and barriers of implementing alternative growth initiatives. During the first year of the project, we have worked towards a case selection for in-depth studies both in Ecuador and in the Global North and planned a visit and forthcoming case study in South Africa.

WP4 (Modelling wellbeing and sustainability outcomes), led by University of Leeds, aims to develop an ecological macroeconomic model that combines conventional macroeconomic variables with indicators of wellbeing and sustainability. It can be used when assessing policies from a multidimensional perspective and when revealing the synergies and trade-offs inherent in the transition to sustainability. We have conducted a targeted review of existing ecological macroeconomic models. From the long list of close to 100 models, we chose a sample of 15 models to investigate how environmental and social indicators are linked to current macroeconomic models. In addition, we have created a set of toy models, explored policies, and identified social and biophysical indicators to be included in the model.

WP5 (Communication, dissemination and exploitation), led by EURADA, communicates, disseminates, and engages stakeholders, via social media, website, publications, and attendance to events. A Communication & Dissemination plan and a visual identity for the project have been created during the 1st reporting period. We have published the first newsletter of the project and increased the numbers of followers in our website and social media accounts. We have also started to plan co-creation activities that are going to take place later in the project. ToBe partners have presented their work in various high-level events.
During the first year, we have already reached some of the planned results in the project:
(1) “A new economic development framework by integrating different schools of thought” bears high scientific potential for the post growth scientific community that has traditionally worked in silos through different conceptual frameworks. This new, integrative framework proposes the notion of sufficiency to be an integrative element between the different schools of thought.
(2) The first ToBe policy brief provides and overview of the themes that the ToBe consortium wants to promote in policymaking. It contributes to raising awareness of sustainablility transformation.
ToBe conceptual frame for sustainable wellbeing
ToBe researchers participated in a roundtable discussion on New Economic model