Question

In the U.S. we have passed many laws to improve the quality of our natural environment. As a result, we have much cleaner air and water than we did in the 1960’s. Is that improvement to our quality of life reflected in our GDP? Why or why not?

Answer 1

Yes it reflected indirectly like expenditure on health and medicine reduce due to improve quality of air and water. Thus people work in efficient way and do more productive work and thus contribute to gdp .Negative externalities reduce and cost living also reduces in one sensesense. This increment in quality of life reflect each and every aspect of economic growth and gdp.

But at the same time government not take in account the green gdp i. e. Loss of natural resources in due course of development is not calculate while calculating gdp monetary value.we are harnessing resources in unsustainable manner for betterment of human without Taking in consideration then loss of monetary value of resources and their need for future generations and pressure on nature in form of global warming green house gas emissions and climate change.