In our presentation today we touched on India looking at as part of their GDP measurement measuring the impact on the environment. A committee has been set up in New Delhi to try and have a Green GDP in place by 2015 – they are ‘making a case for an economic growth that “protects and enhances” the ecosystem”.
My opinion is that the traditional method of measuring the economy through the GDP is no longer suitable. The current GDP calculation does not take into consideration to impact the economic activities have on the environment and also the influence the environment makes to the GDP.
The environment provides us with raw materials and energy while absorbing waste in the ecosystem. The measurement of GDP allows for depreciation of MMK but the NK are not valued and therefore depreciation not allowed for.
I found a few different articles with discussion of a green GDP but I decided to attached this interesting video about some of the limitations of the current calculating of the GDP.