Green GDP

Background

Gross Domestic Product (GDP) is arguably one of the most well-known and commonly used measures of the health of a nation's economy. It is often used in determining the purchasing power and access to loans for a country, providing motivation for nations to propose policies and projects that boost their GDPs. GDP "measures the monetary value of final goods and services produced in a country in a given time period; it counts all of the output generated within the borders of a country." This approach to calculating such an important and often quoted measure favors production today without any consideration about conserving resources for tomorrow. For example, a nation with rich forests could boost its current GDP by clear-cutting the trees and producing large amounts of wooden furniture. This nation could do so without penalty despite the loss of biodiversity and other negative environmental consequences. Similarly, a nation can boost its GDP by harvesting more fish now, without penalty for potentially irreversible harm to the fish stocks.