Question

Imagine you had to include other things in there to create a GREEN GDP. What other sorts of things would you consider to include and how would you measure them?

Answer 1

While the gross national / domestic product (GNP / GDP) index is a extremely accurate measure that represents a country's financial performance, it still mainly ignores the depreciation of assets, non-market economies and, in particular, growth-induced damage to the environment. One of the most significant pillars of sustainable growth and development has been acknowledged as environmental sustainability of economic growth.

To address many of the problems of socalled green growth and sustainable development, we are trying to construct a new / alternative Green GDP indicator that should offer us a clearer view on the effects of financial advancement by providing a fresh strategy to quantifying the costs of environmental and environmental degradation. The indicator reviews economic growth through the environmental prism without speculating on how economic and social trends will evolve and how these developments will guide policy making in the years to come

While calculating the Green GDP it should take into account resource depletion, environmental degradation,

We must identify our' family property': that is, the accessible air and water pollution capability. As long as pollutant discharge does not exceed this ability, environmental degradation will not occur. We can calculate the highest permissible pollutant discharge once we understand this ability, which would serve as the grounds for government regulation.

Then, by clarifying possession of property rights, we must placed a price tag on assets and the environment. For instance, it will have a particular value through rent or trade after identifying land, forest, or water property rights.

The state can then divide the maximum allowable discharge into a number of parts, that is, pollutant discharge rights. These rights may be sold, auctioned or allocated otherwise. It is possible to establish a market for pollution discharge rights so that these rights can be legally traded. The market will, in turn, determine the environmental price

The need for a more extensive macroeconomic indicator is compatible with the desirable phenomenon of sustainable development. As a main indicator of well-being, GDP is erroneously appropriated and is therefore strongly used in political and economic policy analysis. Green GDP might be a more precise indicator or social well-being measure. Therefore, integrating environmental statistics into national accounts and generating a green GDP figure by extension would enhance the ability of nations to handle their economies and resources.