Economic Aspect of Welfare Index

The Economic Aspect of Welfare Index (EAWI) is a variation on the MEW from Nordhaus and Tobin. The Index starts with a private consumption function and then adds and deducts factors that influence welfare, such as leisure and depletion of natural resources. The EAWI is the first index that considers pollution, subjective quality of life indicators to account for “revolution of rising expectations”, and objective quality of life indicators such as mental health and physical health. Developed by Zolotas in 1981.