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How does green GDP seek to adjust conventional GDP?

Answer and explanation

Correct answer: By deducting environmental damage and natural-resource depletion costs

Green GDP is an adjusted measure intended to make output accounting more consistent with sustainable welfare. It starts from conventional GDP and attempts to subtract estimated costs of environmental degradation and depletion of natural resources, such as forests, minerals or groundwater. Option B is correct. Exports, taxes and population may matter in other calculations, but simply adding or removing them does not create a green adjustment.

Related tags

Green GdpEnvironmental DamageResource DepletionSustainabilityGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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