Question

The green gross domestic product (green GDP or GGDP) is an index of economic growth with the environmental consequences of that growth factored into a country's conventional GDP. Green GDP monetizes the loss of biodiversity, and accounts for costs caused by climate change. It overcomes a weakness of the traditional GDP which omits the damage to the environment. Do you think it would ideal to use green GDP instead of GDP to measure the economic production? What is the opportunity cost of continue using traditional GDP to value economic production?

Answer 1

Ans

Green gross domestic product

Green gross domestic product is also known as green GDP which ascertain the environment issue of the country in GDP. It helps in economic growth of the economy And include country conventional GDP

The role of GDP is to provide information about the lost of biodiversity in a country cost associated with climate change.

Conventional GDP has many consequences And is unable to provide information About the progress of economy and the anda social progress of the economy .

GDP which is traditionally process is used to find out only the gross domestic product and the gross output With no concern of Economic factor wealth and assets. This phenomena creates obstacles in leading factor which are depleting the resources. Traditional GDP is also unable to find out the income level in present or in long run.

The mainly three factors which affect the country is is economic factor social factor and environment factor are included to make a country powerful

Green GDP provide proper allocation of tools of economics.Green GDP monetizes the effects of the loss of biodiversity and the costs of climate change.

green GDP requires that net natural capital consumption, including resource depletion, environmental degradation, and protective and restorative environmental initiatives, weather traditional GDP require only the gross production output of economy in a country within the year without using any other consern.

# Green GDP benefit on economic production

1 creation of different indicators of sustainable economic well being.

2 through green accounting nation can observe their economic growth at sustainable level

3 forms can also decide how much of an environment resources to use and when to use it.

4 important to the sustainability of environment resources that do not have a market price.

The use of next best alternative to the one chosen, in other words, as the best of the sacrificed alternatives. You chose the best alternative, the opportunity cost is the second best, the alternative that you would choose if the best were unavailable.is known as opportunity cost of continue using traditional GDP The idea of opportunity costs is a major concept in economics. Because by definition they are unseen, opportunity costs can be easily overlooked if one is not careful.

in the scars resources the opportunity cost provide the best alternative use of resources and stabilize the use of alternative wants and provide the basic key in the economy and provided relationship between scarcity and choice.

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