[Prelims Spotlight] Green GDP, Food and Agriculture Organisation (FAO)

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.

  1. 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
  2. The concept was first initiated through a System of National Accounts.
  3. 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.
  4. 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.
  5. 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

 

User Avatar

By Explains

Explain the News

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments

JOIN THE COMMUNITY

Join us across Social Media platforms.

💥FREE for 24 Hours Prelims Notes
This is default text for notification bar