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.
Frequently asked questions
What is the correct answer to this question?
To adjust for environmental damage and depletion of natural resources
Why is this the correct answer?
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.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates. Topic: GDP and Welfare.
