GREEN GDPMay 29, 2018
Green GDP refers to conventional Gross Domestic Product adjusted for environment cost of economic, Empirical depreciation of National Capital stock.
According to a World Bank Report India has lost $550 Bn in last few years. This loss is on account of environmental degradation, which is close of 8.57% of India GDP. Instead of conventional GDP, Green GDP is important for 4 reasons-
Due to destruction of Natural Capital such as forest, water bodies a significant amount of people are losing their livelihood as well as shelter. For instant, Tribal Communities affected by heavy Deforestation, Mining. Village being displaced due to Construction of River Valley Projects
- Public Health Concern.
According To WHO report India has top 14 cities out of 20 on the list of most Polluted Cities in the World. Clean Air is very much a Natural capital. Poor Quality of Air is a leading cause of pre-mature death of Children in Indian.
- Impact of climate change on economy.
Destruction or Damage to our Natural capital has a direct impact on climate change. Thus issues such as erratic monsoon, drought, flash floods arises which have an adverse effect on economy of country.
If we do not conserve or protect Natural capital at present then future generation will face adverse environment and economic impact.
However many exports criticize concepts like Green GDP. Their argument is based on Kuznets inverted U-curve i.e. Environment Degradation will rise in growth phase of Developing economies, once the potential has reached degradation will go down.
But even in the developing phase if we do not take care of our public Health, then sustainability even in Developed phase will not be possible. And one of the first step to tackle any challenge/problem it is god to measure its impact. Therefore, India should publish “green GDP” figures.