Happy Planet Index

The Happy Planet Index (HPI)

Developed in 2006 by British think-tank the New Economics Foundation (NEF), the Happy Planet Index (HPI) is an attempt to classify countries by their quality of life and achievement in sustainability.
The basic formula for calculating the index is to multiply life expectancy by an average life satisfaction index, then divide the result by the ecological footprint per capita. The life satisfaction variable is calculated based on polls, and is measured on a scale of 1 to 10 (from least satisfied to most satisfied).

The basic formula is:
HPI = (life expectancy X life satisfaction index) / ecological footprint
As an indicator, the HPI sums up in one tidy figure the idea of a long and apparently satisfying life lived in respect of ecological equilibrium, or in other words, sustainable quality of life.

At 68.2, Vanuatu has the highest HPI, whereas the lowest is reported in Zimbabwe, 16.6. The best HPI reports come from Latin America and Eastern Asia, whereas OECD countries rate poorly owing to their substantial ecological footprint. Out of 177 countries in 2006, Japan was placed 95, France at 129, and the USA at 150. With the exception of Morocco and Tunisia, Africa also has low scores due to its overall poor quality of life and low life expectancy.

Criticisms of the Happy Life Index echo those of the ecological footprint, namely, that a light ecological footprint is not necessarily desirable, such as in Sub-Saharan Africa (even though the opposite is also damaging, namely, the heavy ecological footprint of northern countries). In theory, both life expectancy and the HPI should give a better picture of a country’s quality of life, however since the HPI is established based on opinion polls, it is relatively subjective. Therefore, countries like Yemen, Bangladesh and Tajikistan rate high on the HPI compared to almost all European countries.

Source of figures: New Economics Foundation