Q.What is Green GDP? Why does conventional GDP fail to capture the true state of an economy's environmental health?

A country's income can look like it is rising even while its underlying natural wealth is quietly being run down — Green GDP tries to correct exactly this blind spot. …

Green GDP (also called Green Accounting or environmentally-adjusted national income) is a measure of national income that starts from conventional GDP and then deducts an estimate of the monetary value of natural-resource depletion and environmental degradation caused in the process of producing that output.

Why conventional GDP fails to capture environmental health: GDP simply adds up the market value of all goods and services produced in a period. If a factory clears a forest for timber, or a fishery is overexploited, or a river is polluted during production, the full value of that timber, fish, or manufactured output is counted in GDP — but nowhere is the loss of the forest, the depleted fishery, or the degraded river subtracted. As a result, conventional GDP can rise even while a country's actual stock of natural resources and environmental quality is falling — a country could, in principle, show strong 'growth' while depleting the very resource base its future growth depends on. …

Describing Green GDP as simply 'GDP that includes environmental spending' — it is specifically an ADJUSTMENT (a deduction for depletion/degradation) to the existin …