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Determining Weights for the Group of Indicators on Natural Resources and Environment



Economic component index:


13

I KT 10 I i

i 4

Social composition index:


23

I XH 10 I i

i 14

Resource and environmental component index:


7 I i i 24

30

I MT


b. Average weighted average

The important issue in establishing the weighted average formula is to assign appropriate weights to the individual indicators. The author proposes three formulas corresponding to three main groups of indicators on economy, society and environment. The group of composite indicators has only three indicators, each of which assesses different important aspects of sustainable development, and is considered as three pillars reflecting the synthesis of sustainable development. Therefore, the simple weighted average formula should still be used in calculating the index of this group of composite indicators.

- Economic indicators:


13a​

I KT a i I i i

i 4

In which, a i : weight of each indicator in the group of economic indicators

- Social indicators:


23b​

I XH b i

I ii

i 14

In which, b i : weight of each indicator in the group of social indicators

- Group of natural resources and environment indicators:


30 c

I MT c i

I ii

i 24

In which, c i : weight of each indicator in the resource indicator group and


environment

The above research overview has introduced different methods for determining weights. In the framework of this research, the author chose to use the semi-matrix method [15]. This is a simple method and is quite effective when taking into account the country's development strategy in each development stage. The process of determining weights is carried out through the following steps:

- Step 1: Create a matrix of the indicators to be compared

- Step 2: Number the comparison criteria in order

- Step 3: Compare each indicator with the remaining indicators in the matrix, the more important indicator is given the indicator number.

- Step 4: Summarize the number of times met, the indicator with the highest number of times met proves it is more important than other indicators.

- Step 5: Assign each indicator a weight corresponding to its importance.

Applying this method in determining the formula for calculating the sustainable development component index, on the basis of current socio-economic theory, the author proposes semi-matrix tables 2.6, 2.7, 2.8.

With this method of determination, each indicator in each indicator group has a different number of encounters. The larger the number of encounters, the more important the role of the indicator in the research indicator group. If the "number of encounters" is used as the weight of each indicator in the calculation formula, it will lead to a large difference between the indicators.

For example, indicator 8 “Renewable energy share in energy use structure” has a weight of 1 while indicator 9 “Consumer price index” has a weight of up to

10. Thus, in each group of indicators, it is necessary to group them according to the number of times they are encountered, creating conditions for determining more meaningful weights. Because the indicators given in the indicator system are all carefully considered, the difference in importance is not large, and in addition, in each group of indicators, there are only 7-10 indicators, so the author will divide each group of indicators into two groups corresponding to weights 1 and 2 in the calculation formula. Specifically in table 2.9.


(i) Economic composition index

Table 2.6. Determining weights for economic indicator groups


Target

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

(12)

(13)

Number of times

meet

(4) Efficiency of investment capital use

4

5

6

4

4

9

4

4

4

4

7

(5) Social labor productivity


5

5

5

5

5

5

5

5

5

10

(6) Contribution ratio of total factor productivity

integrated into the overall growth rate




6


6


6


9


6


6


6


6


8

(7) The reduction in energy consumption to produce a

GDP unit





7


7


9


10


11


12


13


2

(8) The proportion of renewable energy in the energy use structure

quantity






8


9


10


11


12


13


1

(9) Consumer Price Index (CPI )






9

9

9

9

9

9

(10) Current account balance







10

10

10

13

5

(11) State budget deficit








11

12

13

3

(12) Government debt









12

13

4

(13) Foreign debt










13

6

Total











55

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Determining Weights for the Group of Indicators on Natural Resources and Environment


(ii) Social composition index

Table 2.7. Determining weights for social indicator groups



Target


(14)


(15)


(16)


(17)


(18)


(19)


(20)


(21)


(22)


(23)

Number

meet

(14) Poverty rate

14

15

14

17

14

14

14

14

14

14

8

(15) Unemployment rate


15

15

17

15

15

15

15

15

15

9

(16) Proportion of workers working in the economy who have received training



16

17

16

19

16

21

22

16

4

(17) Coefficient of inequality in income distribution




17

17

17

17

17

17

17

10

(18) Sex ratio at birth





18

19

18

21

22

18

3

(19) Number of students/10,000 population






19

19

19

22

19

6

(20) Number of Internet subscribers







20

21

22

20

2

(21) Percentage of people receiving social insurance, health insurance, unemployment insurance








21

22

21

5

(22) Number of people killed in traffic accidents









22

22

7

(23) Percentage of communes recognized as meeting new rural criteria










23

1

Total











55


(iii) Resource and environmental component index


Table 2.8. Determining weights for groups of indicators on resources and environment



Target


(24)


(25)


(26)


(27)


(28)


(29)


(30)

Number of times

meet

(24) Forest cover ratio

24

24

24

27

24

24

24

6

(25) Percentage of land protected and maintaining biodiversity


25

26

27

28

29

25

2

(26) Area of ​​degraded land



26

27

28

29

26

3

(27) Level of reduction in groundwater and surface water




27

27

27

27

7

(28) Percentage of days with concentrations of air toxic substances exceeding permissible standards





28

28

28

5

(29) Rate of urban areas, industrial parks, export processing zones, industrial clusters

Solid waste and wastewater treatment meet national technical standards or regulations







29


29


4

(30) Rate of solid waste collected and treated to meet national technical standards and regulations







30

1

Total








28


Table 2.9. Summary table of weights corresponding to each indicator in the sustainable development indicator system

Target

Number of meetings

Number of rights

1. General indicators



1. Green GDP

x

1

2. Human Development Index

x

1

3. Environmental sustainability index

x

1

2. Economic indicators



4. Efficiency of investment capital use

6

2

5. Social labor productivity

7

2

6. Contribution ratio of factor productivity

aggregated into overall growth rate

8

2

7. Reduction in energy consumption to produce

one unit of GDP

2

1

8. Proportion of renewable energy in the usage structure

energy

1

1

9. Consumer Price Index (CPI)

10

2

10. Current account balance

5

1

11. State budget deficit

3

1

12. Government Debt

4

1

13. Foreign debt

9

2

3. Social indicators



14. Poverty rate

7

2

15. Unemployment rate

9

2

16. The proportion of workers employed in the economy

trained

4

1

17. Coefficient of inequality in income distribution

input (Gini coefficient)

10

2

18. Sex ratio at birth

3

1

19. Number of students/10,000 population

8

2


Target

Number of meetings

Number of rights

20. Number of Internet subscribers

2

1

21. Percentage of people receiving social insurance

association, health insurance, unemployment insurance

5

1

22. Number of people killed in traffic accidents

6

2

23. Percentage of communes recognized as meeting rural criteria

new village

1

1

4. Resources and environmental indicators



24. Forest cover ratio

6

2

25. Percentage of land protected and maintaining biodiversity

learn

2

1

26. Area of ​​degraded land

3

2

27. Reduction in groundwater and surface water

7

2

28. Percentage of days with concentrations of toxic substances

air exceeds permissible standards

5

1

29. Rate of urban areas, industrial parks, and export processing zones that treat solid waste and wastewater to standards

or corresponding national technical regulations


4


1

30. Rate of solid waste collected and treated to meet standards

corresponding national technical standards and regulations

1

1

(Source: Author's analysis)


From the above analysis, the sustainable development component index is calculated according to the geometric mean formula as follows:

Index of the group of composite indicators:


I TH

Economic component index:


3 I 1 I 2 I 3


13a​

I KT

15 I i i

i 4



economy

In which, a i : weight corresponding to indicator I i in the indicator group


Social composition index:


23b​

I XH 15 I i i

i 14


festival

In which, b i : weight corresponding to indicator I i in the group of social indicators


Resource and environmental component index:


30 c

I MT 10 I i i

i 24

In which, c i : weight corresponding to indicator I i in the group of natural resources and environment indicators

2.2.3. Formula for calculating the sustainable development composite index

The system of sustainable development statistical indicators consists of four groups of indicators: economic, social, environmental resources and composite indicators. The composite sustainable development index will be calculated from these four component indicators. The formula is still based on the principle of calculating the average number. However, in this case, it is necessary to decide whether to use the weighted average formula or not.

According to the content of sustainable development as well as the development perspective of Vietnam, sustainable development is the balanced and harmonious development between the three economic, social and environmental fields, without neglecting any field. Therefore, the contribution of these fields to the development process is the same. In addition, the system of sustainable development statistical indicators has an additional group of synthetic indicators including three indicators to evaluate the overall development process through economic - social - environmental relationships. Because the fields have the same role in sustainable development, the group of synthetic indicators will also play an important role like other groups of indicators.

From there, the author chooses the simple geometric mean formula (unweighted) to calculate the sustainable development index. This is a calculation method that ensures the content and meaning of sustainable development and is easy to implement.

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