Here are Back2Basics collections from today’s news items
B2B #1: From news- Centre to start measuring ‘green GDP’ of States
Green GDP
Green GDP is a term used for expressing GDP after adjusting for environment degradations.
- Green GDP is an attempt to measure the growth of an economy by subtracting the costs of environmental damages and ecological degradations from the GDP
- The concept was first initiated through a System of National Accounts.
- The System of National Accounts (SNA) is an accounting framework for measuring the economic activities of production, consumption and accumulation of wealth in an economy during a period of time.
- When information on economy’s use of the natural environment is integrated into the system of national accounts, it becomes green national accounts or environmental accounting.
- The process of environmental accounting involves three steps viz. Physical accounting; Monetary valuation; and integration with national Income/wealth Accounts:
- Physical accounting determines the state of the resources, types, and extent (qualitative and quantitative) in spatial and temporal terms.
- Monetary valuation is done to determine its tangible and intangible components.
- Thereafter, the net change in natural resources in monetary terms is integrated into the Gross Domestic Product in order to reach the value of Green GDP
Here’s a Factoid to brush up your concepts
Name : Food and Agriculture Organisation (FAO)
Objective : Lead international efforts to defeat hunger
Members : FAO has 194 Member Nations, two associate members and one member organization, the European Union
Headquarters : Rome, Italy
Year Founded : Established in 1945
