Between Vision and Practice in Wellbeing Economics: Examining the Climate Economics Paradigms Driving the Implementation of New Zealand’s National Budget Framework

Abstract

Wellbeing economics has emerged in economics literature in recent years, gaining attention in climate economics due to the need for economic policy intervention to address climate change. New Zealand (in Māori, Aotearoa) was internationally recognised as a first mover by implementing wellbeing as the key objective of the country’s national budget in 2019. This study first undertakes a semi-systematic literature review to identify two distinct paradigms in wellbeing economics, namely wellbeing economics policy practice (WEPP) and the wellbeing economy vision (WEV). This research then examines the extent to which the WEV concept is present in New Zealand’s budget framework. Through a thematic analysis of primary and secondary interview and document data from key stakeholders, this research finds that WEV is only present on the margins of the framework’s policy implementation. The budget system is dominated by a WEPP view. While there is evidence of movement toward WEV over time, this is not attributed to institutional or academic literature, but to the strong influence of the Māori worldview on governance in New Zealand. The study identifies a gap between vision and implementation in wellbeing economics, supporting the need for further research on wellbeing frameworks as they relate to policy intervention.