What is meant by Green GDP?
Green GDP is a term used for expressing GDP after adjusting for environment degradations.
Green GDP is an attempt to measure the growth of an economy by subtracting the costs of environmental damages and ecological degradations from the GDP
The concept was first initiated through a System of National Accounts.
The System of National Accounts (SNA) is an accounting framework for measuring the economic activities of production, consumption and accumulation of wealth in an economy during a period of time. When information on economy’s use of the natural environment is integrated into the system of national accounts, it becomes green national accounts or environmental accounting.
The process of environmental accounting involves three steps viz. Physical accounting; Monetary valuation; and integration with national Income/wealth Accounts.
Physical accounting determines the state of the resources, types, and extent (qualitative and quantitative) in spatial and temporal terms.
Monetary valuation is done to determine its tangible and intangible components.
Thereafter, the net change in natural resources in monetary terms is integrated into the Gross Domestic Product in order to reach the value of Green GDP.
According to world bank India suffered loss of over 8.5 % of gdp due to loss of air pollution in 2013 , fertility of soil decreases due to over use of chemical fertilizer, which leads to decreasing the agriculture productivity of the country.over exploitation of ground water leads to depleting of water reservoir, in addition depletion of forest resource leads to decreasing of ecosystem service.
India AND Green GDP of states:
India’s environmental diversity and riches are universally recognised but have never been quantified.
Starting this year, the government will begin a five-year exercise to compute district-level data of the country’s environmental wealth.
The numbers will eventually be used to calculate every State’s ‘green’ Gross Domestic Product (GDP).
The metric will help with a range of policy decisions, such as compensation to be paid during land acquisition, calculation of funds required for climate mitigation, and so on.
This is the first time such a national environment survey is being undertaken.
A pilot project is set to begin this September in 54 districts.
The land will be demarcated into “grids” with about 15-20 grids per district.
These will capture the diversity in the State’s geography, farmland, wildlife, and emissions pattern, and will be used to compute a value.
For instance, there’s a no-go zone, we need to calculate what its economic impact.
Much of the data required for the inventory would be sourced from datasets that already exist with other government ministries.
How is Green GDP Calculated?
Green GDP is calculated by subtracting net natural capital consumption from the standard GDP. This includes resource depletion, environmental degradation and protective environmental initiatives. These calculations can alternatively be applied to the net domestic product (NDP), which subtracts the depreciation of capital from GDP. In every case, it is required to convert any resource extraction activity into a monetary value since they are expressed in this manner through national accounts.
Launching “Green Skilling Programme”
The government has also launched a ‘green skilling’ programme under which youth, particularly school dropouts, would be trained in a range of ‘green jobs’— as operators of scientific instruments used to measure environmental quality, as field staff in nature parks, and as tourist guides.
Some of the labour required for the survey would also be sourced from the green-skilled workforce.