A Study on Global Climate Mitigation and National Resource Management Based on the Green GDP Accounting Model

Abstract

This article investigates the potential of Green GDP (GGDP) to replace conventional GDP as a global economic metric. By accounting for environmental degradation and natural resource depletion—factors typically excluded from traditional GDP calculations—GGDP offers a more comprehensive measure of long-term economic performance. Utilizing a linear regression model, this study examines the relationship between economic activity and climate change, with a focus on carbon emissions and water consumption. The findings reveal an inverse correlation between GGDP and rising global temperatures, suggesting GGDP’s potential to mitigate climate change by integrating the environmental costs of economic growth. A case study of China further illustrates how adopting GGDP could lead to improvements in air quality, more efficient resource management, and alignment with the country’s environmental objectives, including its commitments under the Paris Agreement. Although the transition from GDP to GGDP may face resistance, particularly in nations heavily reliant on fossil fuel consumption and resource exploitation are significant. This study underscores the necessity of incorporating environmental considerations into economic evaluations to foster a sustainable future, where economic growth can be achieved in harmony with ecological preservation. GGDP thus provides a more holistic and sustainable framework for assessing global economic performance.