All uses of biodiversity are not incorporated in economic accounts and this leads humans to under-value biodiversity. Ecosystem services and resources such as mineral deposits, soil nutrients, and fossil fuels are capital assets but traditional national accounts do not include measures of the depletion of these resources. This means a country could cut its forests and deplete its fisheries, and this would show only as a positive gain in GDP (gross national product) without registering the corresponding decline in assets (wealth). This is where Green GDP comes into play. The green GDP is the measurement of GDP growth with the environmental consequences of that growth factored in.
The relationship between biodiversity and ecosystem function is clear but a major question in ecology is how much biodiversity is required to maintain ecosystem function.
Green Gross Domestic Product is the index of the Economic growth of a particular country which enshrines the environment consequences of the economic growth.
Kindly note the following observations:
- Green GDP means that it accounts the monetized loss of biodiversity, costs caused by climate change.
- Green GDP is conventional gross domestic product figures adjusted for the environmental costs of economic activities. It’s a measure of how a country is prepared for sustainable economic development.