GDP or the Gross Domestic Product is defined as an aggregate measure of production equal to the sum of the gross values added of all resident institutional units engaged in production (plus any taxes, and minus any subsidies, on products not included in the value of their outputs.
Now the concerns for environment have gained high place in everyone's life. The people have become deeply concerned with environmental problems caused across the world through depletion of environmental resources at one hand and various pollutions leading to global problems on the other.
Earlier the GDP was calculated without taking into consideration the actual damages caused to the environment through the process of production.
But now, the damages to environment, its resources, public health etc. are also taken into consideration. As such the cost of environmental damages is to be subtracted from the GDP to calculate the Green GDP and it is very important.
Thus, GREEN GDP is an approach to conserve environment and it is an attempt by economists, due to pressures from environmental problems and tragedies the world over, to measure the Economic Growth compared to the harm done by production to environment.
Key Words: GDP, Environment, Economists