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What is the main purpose of green GDP?

Answer and explanation

Correct answer: To adjust for environmental damage and depletion of natural resources

Conventional GDP records the value of marketed production but generally does not subtract the full cost of pollution, ecosystem damage, or depletion of natural resources. Green GDP is an adjusted measure that attempts to account for these environmental costs, usually by deducting estimated degradation and resource depletion from conventional output. It therefore gives a more sustainability-oriented picture, although valuation can be difficult and imperfect.

Related tags

Green-GdpWelfareEnvironmentSustainabilityGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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