The economics of the wellbeing economy: Understanding heterodox economics for health‐in‐all‐policies and co‐benefits

Abstract

AbstractIssue AddressedThe “wellbeing economy” represents a significant departure from the orthodox, neoclassical economic model of rational, utility‐maximising individuals embedded in a growth economy. Emerging approaches to the wellbeing economy draw heavily upon insights from a range of heterodox schools of economic thought; these schools differ in many respects, but all share the central common insight that the economy is best conceived as a social provisioning system for humanity's needs.MethodsThis narrative review introduces and summarises key dimensions of a number of these heterodox economic approaches, all of which have had or are likely to have significant implications for wellbeing economics. Their relationship with wellbeing and their resulting approaches to public policy and the Health‐in‐All Policies (HiAP) approach is described and explored.ResultsThe schools of heterodox economic thought which have had the most impact on the development of approaches to the “wellbeing economy” include ecological economics (including both post‐growth and degrowth economics), feminist economics, and modern monetary theory. Recent developments in the economics of inequality and institutional economics have also been of significance. Yet HiAP approaches represent an attempt to incorporate consideration of health consequences within public policy processesinsidethe neoclassical economics paradigm, reflecting the reality that social and economic forces are typically the most important determinants of health. WHO's newHealth For Allapproach draws much more directly on the heterodox economics that underpins wellbeing economy thinking.ConclusionsWellbeing economics offers many attractive features for HiAP—but may not achieve its full potential within conventional economic policy paradigms. Calls to replace cost–benefit analysis with “co‐benefit” analysis are attractive, but face strong practical obstacles. Meanwhile, strong countervailing forces and interests might still thwart achieving the broader goals of wellbeing economics.So What?Operationalising “wellbeing economy” thinking requires a clear understanding of heterodox economics, and how they can be incorporated into more formal economic analysis. It remains to be seen if HiAP is the right tool by which to implement the newHealth For Allapproach.