Green GDP is :

Question

Green GDP is :

Accepted Answer

The correct option is 4:
Green GDP is a measure of economic output that attempts to account for the environmental consequences of that production, integrating ecological costs into the traditional calculation of Gross Domestic Product (GDP). It is calculated by deducting the environmental damage, the depletion of natural resources, and the costs of pollution cleanup from the standard GDP figure. Traditional GDP often overstates economic welfare by treating the depletion of natural capital (like forests or clean air) as a non-cost or even as a gain when resources are extracted. Green GDP, or Environmentally Adjusted GDP, aims to provide a more sustainable and accurate measure of a nation's economic progress, promoting sustainable development by placing a monetary value on environmental assets and their degradation.

The incorrect option is 1:
"Agriculture and allied sector income" refers only to the primary sector of the economy, representing income generated from farming, fishing, forestry, etc. While this is a component of overall GDP, it does not incorporate environmental costs and therefore is not a definition of Green GDP.

The incorrect option is 2:
"Black money free national income" relates to the informal or underground economy, which is income not reported to tax authorities. While dealing with black money is important for accurate national income estimation, it is a matter of tax compliance and measurement, not environmental sustainability, and thus is unrelated to the concept of Green GDP.

The incorrect option is 3:
"Income earned from new assets" is an overly vague concept and could relate to capital formation or investment returns in various sectors. It does not specifically account for the environmental cost of producing those new assets or the depletion of natural resources, which is the defining characteristic of Green GDP.