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?

A Inclusion of the estimated value of unpaid household and domestic services
B Deduction of the costs associated with environmental degradation and depletion of natural resources
C Addition of the value of renewable energy generation to national income
D Adjustment for changes in the prices of environmentally friendly (“green”) goods
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