Green national accounting with a changing population

Following Arrow et al. (2003), this paper considers green national accounting when population is changing and instantaneous well-being depends both on per capita consumption and population size. Welfare improvement is shown to be indicated by an expanded 'genuine savings indicator', taking into account the value of population growth, or by an expanded measure of real NNP growth. Under CRS, the measures can be related to the value of per capita stock changes and per capita NNP growth, using a result due to Arrow et al. (2003). The results are compared to those arising when instantaneous well-being depends only on per capita consumption.