Artificial nighttime lights and the “real” well-being of nations: ‘Measuring economic growth from outer space’ and welfare from right here on Earth
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Keywords

Artificial lights and economic growth
Nighttime lights and growth
Growth and welfare
Nighttime lights and real well-being (welfare).

How to Cite

AMAVILAH, V. H. (2018). Artificial nighttime lights and the “real” well-being of nations: ‘Measuring economic growth from outer space’ and welfare from right here on Earth. Journal of Economics and Political Economy, 5(2), 209–218. https://doi.org/10.1453/jepe.v5i2.1637

Abstract

Abstract. GDP remains too much of an imprecise measure of the standard of living. There is a need for either substitutes or complements. Nighttime lights are a reasonable indicator of the extent, scale, and intensity of socio-economic activities, but a poor measure of national welfare. However, if nighttime lights are understood to constitute externalities, then their effects can be used to adjust measured growth for welfare. From that angle, nighttime lights appear to exert sub-optimal positive externalities in developing countries, and supra-optimal negative externality in developed countries. This means that even if we assume equal growth rates in developing and developed countries, welfare is enhanced by increasing nighttime lights in developing countries and reduced by increasing nighttime lights in developed countries.

Keywords. Artificial lights and economic growth, Nighttime lights and growth, Growth and welfare, Nighttime lights and real well-being (welfare).

JEL. H23, O15, D62, I12, O47, I31, R13, Q52.
https://doi.org/10.1453/jepe.v5i2.1637
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