Building an Aggregate Sustainability Index
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Abstract
Achieving a sustainable development is one of the major challenges of modern societies. This is why it is important to obtain policy-relevant and operative measures of sustainability. Thanks to its construction within a computable general equilibrium model, the FEEM Sustainability Index (FEEM SI) is able to project indicators in time and evaluate sustainability in the future under different economic scenarios. We provide an example of the effects of the introduction of a composite policy aimed at improving overall sustainability and show how the choices we make today can change our future.