Application of composite index for sustainability assessment

Abstract

Sustainable development more than for twenty years is on local, national and international agenda. Aside political aims and declarations, it is important to assess present situation, compare past and foresee future trends. As sustainable development is multidimensional and covers various aspects of life, need to take both quantitative and qualitative indicators into account challenges sustainability assessment in general. Therefore, this paper aims to evaluate the alteration of sustainable development by applying composite index for Lithuania and other EU countries during 2004-2010. To achieve this goal, changes in the main economic, environmental and social indicators of EU15, Baltic States, Poland and Czech Republic have been analysed. OECD methodology (2008) was used to construct and calculate integrated sustainability index of selected countries. Analysis reveal that indicators like GDP, export, energy and material intensity, children mortality, poverty etc. have improved in countries which recently have joined EU. Economy sub-index was the highest in ES15 and environmental index - in Lithuania and Latvia. Meanwhile, overall composite index was the highest in ES15 - both in 2004 and 2010. The lowest composite index in 2004 was in Poland - only 39.09 and in 2010 - in Latvia - 45.7. Lithuania's index respectively reached 45 and 51 points. Social indicators, like number of doctors, children mortality, unemployed, crime rate and poverty level, mainly influenced sustainability index. Only some indicators from economic and environmental spheres had influence an overall index of sustainability.