Question

Traditional GDP measures economic output without accounting for the environmental costs associated with production. In order to obtain a more comprehensive measure of sustainable economic welfare, the concept of “Green GDP” modifies the conventional GDP framework. Which of the following adjustments is primarily made while calculating Green GDP?

Q: Answer-Traditional GDP measures economic output without accounting for the environmental costs associated w...

Green GDP adjusts conventional GDP by Subtracting environmental damage like pollution Subtracting depletion of natural resources like forests, minerals This makes it a better measure of sustainable economic welfare, as it accounts for the environmental costs ignored in standard GDP.