This concept is a modified version of the traditional Gross Domestic Product (GDP) that takes into account the environmental and sustainability aspects of economic activity. It is an attempt to measure economic growth while considering the impact of that growth on the environment and natural resources. Identify the concept.

Green GDP

The correct answer is Option (2) → Green GDP

Green GDP is an economic indicator that takes into account the environmental costs and benefits associated with economic activities, providing a more comprehensive measure of a nation’s economic growth. Green GDP, also known as environmentally adjusted GDP or genuine progress indicator (GPI), goes beyond conventional GDP calculations by factoring in the costs of environmental degradation, depletion of natural resources, and pollution. It aims to provide a more accurate representation of economic growth by accounting for the negative impacts on the environment.

Green GDP offers a more holistic approach to measuring economic progress, as it takes into account the long-term sustainability of economic activities. It highlights the trade-offs between economic growth and environmental preservation, providing policymakers with valuable insights into the true costs and benefits of development projects. By incorporating environmental considerations, Green GDP encourages the adoption of sustainable practices and the transition to a greener economy.