Do you know the concept of Green GDP and Ecological Debt
All the uses of biodiversity, ecosystem services and resources like mineral deposits, soil nutrients, and fossil fuels are capital assets, but it is not included in national account or GDP (Gross Domestic Product). It is just because they are capital assets and their monetary measures are not calculated on the market value. The concept of Green GDP came to incorporate or registered corresponding decline in assets (wealth) as a positive gain in GDP (gross national product) whereas the Ecological Debt refers to the consumption of resources from within an ecosystem that exceeds the system's regenerative capacity.
What is Green GDP?
Green GDP is a term used generally for expressing GDP after adjusting for environmental damage. In other words, Green GDP is a monetization of the loss of biodiversity caused by climate change. It is calculated by subtracting resources depletion, environmental degradation from the traditional GDP figure. It is very helpful for managing economies as well as resources.
It is expected to account for the use of natural resources as well as the costs involved. It also includes medical costs generated from factors such as air and water pollution, loss of livelihood due to environmental crisis such as floods or droughts, and other factors.
It is indicator of not only how a country is prepared for the sustainable economic development but also the Waste per capita or Carbon Dioxide emissions growth/decline. This concept was introduced by the China by publishing its first green GDP data for the year 2004 in 2006.
What is Ecological Debt?
The concept of ecological debt emerged from the 1990s within social movements driven by rising environmental awareness, emerging Western consciousness of responsibility for past colonial subjugations, and a general sense of unease during the debt crisis. It referred to as the level of resource consumption and waste discharge by a population in excess of locally sustainable natural production and assimilative capacity.
It is built upon a theoretical foundation that draws on biophysical accounting systems, ecological economics, environmental justice and human rights, historical injustices and restitution, and an ecologically-oriented world-system analysis framework. It arises due to the exports of raw materials and other products from relatively poor countries or regions being sold at prices which do not include compensation for local or global externalities; and rich countries or regions making disproportionate use of environmental space or services without payment (for instance, to dump carbon dioxide).