Traditional measurements of performance, such as gross domestic product (GDP), account for economic development but do not accurately reflect human or environmental well-being. Since the 1990s several new metrics have been proposed, including green GDP, which attempts to provide a more accurate accounting that considers both the positive transactions that benefit well-being and the negative economic activities that diminish it
Gross Domestic Product (GDP) almost completely ignores our environment. Even worse, actually, GDP often includes the environment on the wrong side of the balance sheet. If we first pollute and then pay to clean up the mess, both activities add to GDP. Environmental degradation frequently looks good for the economy. In that regard, GDP is a poor welfare measure.
The green gross domestic product (green GDP) is an index of economic growth with the environmental consequences of that growth factored in. Green GDP monetizes the loss of biodiversity, and accounts for costs caused by climate change.
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