GGDP Research Based on Structural Equations And DEA Model

Abstract

With the advancement of globalization, the climate problem has gradually spread to the world, causing serious effects such as shrinking glaciers. So, we introduced GGDP to calculate economic health to improve the environment. After that, we use fuzzy mathematics to deal with the potential variables affecting climate to obtain a linear relationship between carbon emissions and green resource loss based on a structural equation model. Then we collected data from the World Bank and related data from some countries, and built a Network DEA model based on the traditional data envelopment analysis model. By analyzing data from China, Germany, and Australia, we conclude that using GGDP as a measure does not significantly affect economic strength in the long run, while also protecting the environment. Therefore, expanding GGDP accounting to the whole world has its advantages.