1. Green net national income:
Green net national income is the difference between Net national income and Depreciation of natural capital. It involves the knowledge of following concepts.
a. Net national income:
It is the market value of the final goods and services produced by the residents of the counting dumping of period of the year.
b. Depreciation of natural capital:
Depreciation refers to loss of value of the capital because of its continuous use. Natural resources including environment. Accordingly, Depredation of natural capital refers to the loss of value of natural resources of a country because of their continuous use, as well as environmental degradation. Green national Income = Net national income – Depletion of natural resources – environmental degradation.
2. Genuine Savings :
Another measure of sustainable development is genuine savings the genuine saving is the rate of saving adjusted not only for depreciation of man made capital but also for loss of value of the natural capital. Genuine savings = Rate of savings – Depreciation of man made capital – Depreciation natural capital.
