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Information about Green Gross Domestic Product

Green Gross Domestic Product (Green GDP) is an index of economic growth with the environmental consequences of that growth factored in.

In 2004, Wen Jiabao, the Chinese premier, announced that the green GDP index would replace the Chinese GDP index itself as a performance measure for government and party officials at the highest levels.

As an experiment in national accounting, the Green GDP effort collapsed in failure in 2007, when it became clear that the adjustment for environmental damage had reduced the growth rate to politically unacceptable levels, nearly zero in some provinces. In the face of mounting evidence that environmental damage and resource depletion was far more costly than anticipated, the government withdrew its support for the Green GDP methodology and suppressed the 2005 report, which had been due out in March, 2007.[1]

Independent estimates of the cost to China of environmental degradation and resource depletion have for the last decade ranged from 8 to 12 percentage points of GDP growth.[2] These estimates support the idea that, by this measure at least, the growth of the Chinese economy is close to zero.

Although statisticians may caution about 'Green GDP' and its methodological problems such as monetizing the loss of biodiversity or the impacts of climate change caused by carbon dioxide emissions, one must also acknowledge how poorly represented true growth or sustainable development is with the anachronic GDP.

Some environmental experts prefer physical indicators (such as "waste per capita" or "carbon dioxide emissions per year"), which may be aggregated to indices such as the "Sustainable Development Index".

See also

Further reading

References

1. ^ Kahn, J. and Yardley, J. (2007) "Choking on Growth: As China Roars, Pollution Reaches Deadly Extremes", The New York Times, 26 Aug 2007.
2. ^ Economy, Elizabeth (2007) "[Green GDP: Accounting for the Environment in China [1]]", China from the Inside, U.S. Public Broadcasting System.


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This is a Chinese name; the family name is Wen.

温家宝
Wen Jiabao

Preceded by
Succeeded by


Nationality Chinese
Political party Communist Party of China
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gross domestic product, or GDP, is one of the ways for measuring the size of its economy. The GDP of a country is defined as the total market value of all final goods and services produced within a country in a given period of time (usually a calendar year).
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2007 by topic:
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The term alternative propulsion
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The process uses the whole plant to improve the CO2 balance and increase yield.
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