A Review on Welfare, Inclusive Growth and Sustainable Consumption: An Approach to Build Sustainable Economic Indices

This article explores the impact between welfare, inclusive growth, and sustainable consumption in the context of a sustainable economic index. The article draws on various studies to present evidence that economic development, liberalization, and tolerance have led to higher levels of happiness and improved human development indicators worldwide. Inclusive growth is found to be the foundation for poverty reduction, and economic growth is still a necessary condition for poverty and income inequality reduction. Institutional factors and improvements in institutional quality contribute significantly to long-term poverty and income inequality reduction. Sustainable consumption choices reflect values and lifestyles, and macro-level and structural factors play a more significant role in sustainable consumption than personalized factors. The article concludes that a sustainable economic index should consider welfare, inclusive growth, and sustainable consumption as interconnected components, with a focus on macro-level and structural factors that promote sustainable development.