Question

Which of the following factors is/are concerned in the calculation of Green National Income (GNI)?

A. National Income

B. Depletion of Natural Resources

C. Environmental Degradation  

1. Only A and C  
2. Only A
3. Only A and B 
4. All of the above

Answer 1

Correct Answer - Option 4 : All of the above

The Correct answer is All of the above.

• The Green Gross Domestic Product, or Green GDP for short, is an indicator of economic growth with environmental factors taken into consideration along with the standard GDP of a country.
• Green GDP is calculated by subtracting net natural capital consumption from the standard GDP.
• This includes-
  • Resource depletion.
  • Environmental degradation and protective environmental initiatives.
• These calculations can alternatively be applied to the net domestic product (NDP), which subtracts the depreciation of capital from GDP.
• In every case, it is required to convert any resource extraction activity into a monetary value since they are expressed in this manner through national accounts