Syllabus: GS-3 Economy/Environment
In News
- Chhattisgarh has become the first state in India to introduce a pioneering initiative linking the ecosystem services of forests to the Green Gross Domestic Product (Green GDP).
What is Green GDP?
- Green GDP is an economic indicator that aims to measure the true economic performance of a country while considering the environmental impact of economic activity.
- Green GDP:
- Subtracts the environmental costs of economic activity from traditional GDP.
- Includes the value of environmental benefits, such as those provided by forests (clean air, water purification, biodiversity).
Key Features of the Initiative
- Valuing Ecosystem Services: Quantifying benefits such as clean air (CO₂ absorption and oxygen production), water conservation (economic impact of rivers and springs), and biodiversity (ecological balance and farming support).
- These valuations will be incorporated into the state’s Green GDP calculations.
- Economic and Cultural Integration: Recognizing forests’ contributions beyond timber, including their cultural and spiritual significance, particularly for tribal communities.
- Promoting eco-tourism through jungle safaris and camping in the state’s national parks, boosting employment opportunities.
- Scientific Assessment: Employing scientists to measure and value the ecosystem services provided by forests to accurately reflect their contribution to the state’s economy.
Benefits of Green GDP
- Recognizes the non-tangible benefits of forests, such as climate regulation and soil enrichment, often overlooked in traditional GDP calculations.
- Highlights the trade-offs between economic growth and environmental sustainability.
- Encourages the adoption of policies that minimize environmental damage and promote sustainable resource use.
- Helps identify sectors with the highest environmental impact for targeted interventions.
Challenges of Green GDP
- Valuation Complexity: Assigning monetary value to non-market environmental benefits (e.g., biodiversity) is challenging.
- Data Gaps: Lack of reliable and comprehensive data on environmental degradation and natural resource usage.
- Implementation Issues: Adopting Green GDP requires significant adjustments in accounting frameworks and policymaking.
| Global Initiatives on Green DP Accounting – United Nations System of Environmental-Economic Accounting (SEEA): The SEEA provides a framework for integrating environmental data into national accounts. 1. Tracks natural resources, environmental degradation, and ecosystem services. – Wealth Accounting and the Valuation of Ecosystem Services (WAVES): A global partnership led by the World Bank, WAVES supports countries in incorporating natural capital into national accounts. 1. Focuses on forests, water, and ecosystems. |
Source: IE
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