Green GDP Calculation Methods and Practical Applications Based on an Environmental Perspective

Abstract

In using the traditional GDP to measure the health of the country, the impact of ecological pressures is ignored. As the economy grows and the ecological environment deteriorates, it forces us to shift to green GDP to measure the health of the economy so that it can reflect sustainable growth in the economic environment. To address the many challenges of green growth and sustainable development, this paper evaluates the relationship between GDP and resources and the environment by using the development of a green GDP model. We have chosen an accounting model of (GGDP), using which we include the cost of environmental pollution, the cost of resource depletion, and the cost of environmental improvement. This model is then monetized and the final model obtained provides a new method for quantifying the cost of environmental and resource degradation, demonstrating that GGDP can be used as a primary measure of economic health and can measure the impact on climate mitigation.