Registered Environmental Manager (REM) Practice Exam

How is the Happy Planet Index (HPI) calculated?

1. Life expectancy divided by ecological footprint

2. (Subjective well-being x Life expectancy x Inequality) / Ecological footprint

3. (Gross national income x Life satisfaction) / Resource consumption

4. Ecological footprint divided by population size

The correct answer is: (Subjective well-being x Life expectancy x Inequality) / Ecological footprint

The Happy Planet Index (HPI) is designed to measure the well-being and sustainability of countries by taking into account three key components: subjective well-being, life expectancy, and inequality, all in relation to ecological footprint. The calculation effectively integrates these factors to provide insight into how efficiently a country is delivering long, happy lives for its residents while respecting the environmental limits of our planet. Subjective well-being reflects how people feel about their lives, which is an important measure of happiness. Life expectancy indicates the health and longevity of the population, and inequality considers how evenly resources and opportunities are distributed within the society. The ecological footprint represents the environmental impact of the country, specifically the resources consumed and the waste generated. By multiplying subjective well-being, life expectancy, and inequality, and then dividing by the ecological footprint, the HPI offers a comprehensive view of sustainability and quality of life relative to environmental impact. Understanding these various components illustrates the HPI's unique approach to measuring prosperity beyond mere economic indicators, emphasizing the importance of well-being and environmental sustainability. This highlights why the chosen calculation is both informative and relevant in assessing a country's performance in achieving happy and sustainable lives for its citizens.