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Paper by Cézanne Kooter

 

Green GDP, Yes or No?
UGCCFE102 MACRO ECONOMICS

The GDP is the value of aggregate or total production of goods and services
in a country during a given time period - usually a year
...

As an overall barometer of progress, Gross Domestic Product (GDP)
has long been criticized because it simply measures economic activity and not
genuine improvements in the quality of our lives
...
” GDP lumps together costs with benefits, so that activities that
enhance welfare (e
...
, education expenditures) have equal weight as
expenditures that represent the externalized costs of growth (e
...
, oil spill
remediation)
...
(Garrett C
...
Webber, 2010)
Because these issues are not accounted for in the GDP indicator,
using the GDP to measure a country’s true wealth is remarkably poor at best
and highly damaging at worst
...
Groves and Michael E
...
But this is a false choice;

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16th of February 2016

Paper by Cézanne Kooter

 

Green GDP, Yes or No?
UGCCFE102 MACRO ECONOMICS

policymakers should obviously choose both
...
Such an
indicator, if it existed, might be called the Green GDP
...
Groves and
Michael E
...
(Garrett C
...
Webber, 2010)
However, this is not as simple as it seems, because introducing green
accounting measures to GDP creates the challenge of dividing the natural
environment into quantifiable units and giving each a market value
...

Groves and Michael E
...
We
cannot describe the value of the trees in a specific area or the value of the
water that runs through the mountains
...
It is a lifelong process of conducting the information about the value of
any sort of nature
...
How will you make a theory out of something
that is indefinable?
Theoretically speaking, pricing either of these aspects of nature could
help markets and policymakers formulate a more sustainable and
conscientious use of resources
...

As an example to show that it is really hard to implement this theory, an
international collection of experts on environmental and economic accounting
agreed, at the Rio Earth Summit hosted by the United Nations Environment
Program and the World Bank in 1992, to create a program "to develop
national systems of integrated environmental and economic accounting in all
countries"
...
Ten years later, in 2002, at the Johannesburg Summit in South
Africa, the experts' primary recommendation regarding environmental
accounting was to conduct further research
...
Primarily, it was not directed toward
policymakers or the general public, who largely ignored it; instead, it was
geared towards the statisticians and national accountants
...
They were
more going into the direction of modeling, rather than "descriptive
accounting"
...

(Garrett C
...
Webber, 2010)

3  

16th of February 2016

Paper by Cézanne Kooter

 

Green GDP, Yes or No?
UGCCFE102 MACRO ECONOMICS

This lack of agreement between the two parties, showed that there are
still far too many challenges to solve before the world's global accountants will
agree to place a dollar value on the planet, on both its resources and its
growing pollutants
...
Groves and Michael E
...
However, I
do see that by implementing this theory, there has to be done a lot of research
and observations
...

I think as well that, with the implementation of the 'Green GDP', if it will
finally be set in place, the measurements of the GDP of the countries
worldwide, will give us a better view of how the countries are really
developing
...
A
country with a very high GDP will maybe not be sustainable at all to maintain
this high GDP it has at the current time
...
And on what we should put
our efforts and our concerns
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In order to include the environmental costs, the GDP should be amended by,
adding the production of wealth, which is not included in GDP minus the
destruction and loss of this wealth, and adding that up to the GDP
...
C
...
E
...
Voices: Greening the Gross
Domestic Product
...
earthmagazine
...
(2010, April 14)
...
Retrieved February 16, 2016, from
http://www
...
org/blog/2010/04/measuring-what-matters-gdp-ecosystemsand-environment

Zorach, A
...
Why GDP (Gross Domestic Product) is a Poor
Measure of Wealth and Prosperity
...
wordpress

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