Green GDP
Gross Domestic Product adjusted for environmental costs (natural resource depletion, pollution, degradation), providing more complete economic accounting.
Formula
Green GDP = GDP − Cost of Environmental Degradation − Resource Depletion
Real World
China's National Bureau of Statistics piloted a Green GDP calculation in 2006, finding that pollution costs alone wiped out roughly 3% of GDP — prompting the government to quietly shelve the project because results embarrassed high-growth provinces.
Exam Focus
For 'assess' questions, contrast Green GDP's advantages over conventional GDP with the practical difficulty of monetising ecosystem services.
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