A new approach to measuring green GDP: a cross-country analysis

Indonesia has expanded and adapted to international market trends in tandem with the advancement of its industry. Various factors, such as industrialization, urbanization, and the exploitation of natural resources, are responsible for this growth. However, these activities have also led to environmental degradation in many parts of Indonesia. Deforestation is one of the most significant environmental issues that Indonesia is currently grappling with. The production structure of developing countries can exacerbate the relationship between environmental degradation and economic growth, which can be detrimental to the environment. The primary objective of this study is to examine the relationship between environmental degradation and green economic growth, with a particular emphasis on Gross Domestic Product (GDP), using the Environmental Kuznets Curve (EKC) model. This model posits a reversible relationship between per capita income and environmental quality. The novelty of this study lies in the development of better indicators to measure EKC and Green GDP. These indicators cover a wide range of aspects, from air and water quality, and biodiversity levels, to energy consumption. The Pearson correlation analysis was employed to examine the correlation between GDP and IKLH in Indonesia from 2010 to 2022. The analysis yielded positive and robust correlations between GDP and IKLH. Consequently, the higher the GDP, the greater the IKLL or the less environmental degradation. An advance in the economy during the industrial era in Indonesia is indicated by the increase in the country's GDP growth rate. The short-term and long-term impact of economic expansion on the environmental quality index of life suggests that there is a reduction in environmental degradation. The concept of Green GDP should be proposed as an alternative indicator that considers asset depreciation, non-market economy, and environmental damage caused by economic growth.

This paper attempted to understand different dimensions of environmental degradation in India. The costs of environmental degradation were analyzed based on a recent report of the World Bank on the subject. Environmental sustainability could become the next major challenge for India as the costs of degradation are huge. The paper also threw light on different approaches to environmental degradation. Integrating sustainable development goals with the main stream of economic strategy have been suggested for preventing further degradation of the environment. Regulation of markets becomes imperative for preventing environmental degradation. It was argued that the current regulatory framework must be modified to cope with environmental pressures, irrespective of the origin of sources and for this, the regulatory capacity has to be increased with growing mandates of meeting sustainable development requirements.

The objective is to calculate the value of the green industrial PIB of a foundry in the territory of Santa Catarina and to contextualize its importance as a new methodological tool. To legitimize the objective of this study, the green GDP equation is equal to the Gross Sales Revenue (Industrial GDP) - (Depletion of Water Resources + Cost of Environmental Degradation). In this context, the depletion of natural resources corresponds to the total value of the extraction of water resources, and the cost of sectoral environmental degradation is given through the proxies of the methodology of the Industrial Pollution Projection System (IPPS) applied directly to the industrial product sector. estimate of the cost of the industrial sector studied here. Methodologically, it is an exploratory, descriptive, explanatory, bibliographic, documentary and ex post facto study. As a result, the green GDP of the foundry was lower than the industrial GDP in all the surveyed years. It is noticed that the industrial economic activity of the foundry, within these parameters of analysis, signals a loss of future sustainability, taking into account the years investigated. Therefore, in order for this particular industry to reverse this scenario, investments in technologies are necessary, in order to minimize the consumption of natural resources and consequently maximize its green GDP.

Purpose The main objective of the present study is to examine the role of green innovation, green resources, and urban concentration in green and sustainable growth in India. Design/methodology/approach This study uses econometric methods robust to unit root analysis, such as ADF and DF-GLS, and the ARDL bounds test approach to analyze the long-run and short-run relationship between the selected time-series variables for India from 1993 to 2021. Further, diagnostic inspection like the Breusch-Pagan-Godfrey test and the Breusch–Godfrey Serial Correlation LM test to determine whether heteroskedasticity and serial correlation exist in the data. CUSUM and CUSUMSQ were applied to assess the stability of the model. Findings The results show that green innovation has a positive relationship with green GDP, which signifies that with innovation in developing eco-friendly technologies, a nation can lower its dependence on fossil fuels and, consequently, pollution emissions, delegating green production to raise green growth. On the other hand, renewable energy sources indicate a negative impact on green GDP with an insignificant coefficient. Furthermore, urbanization has a positive and significant relationship with Green GDP, focusing on cities that create sustainable urban design. Hence, it provides support for green urban development. Originality/value To the best of the authors’ knowledge, existing literature predominantly focuses on investigating the relationship between green growth and sustainable development without considering the role of green innovations. The present study explored the role of green innovation and renewable resources in attaining green growth and achieving sustainable development in a developing country like India.

In using the traditional GDP to measure the health of the country, the impact of ecological pressures is ignored. As the economy grows and the ecological environment deteriorates, it forces us to shift to green GDP to measure the health of the economy so that it can reflect sustainable growth in the economic environment. To address the many challenges of green growth and sustainable development, this paper evaluates the relationship between GDP and resources and the environment by using the development of a green GDP model. We have chosen an accounting model of (GGDP), using which we include the cost of environmental pollution, the cost of resource depletion, and the cost of environmental improvement. This model is then monetized and the final model obtained provides a new method for quantifying the cost of environmental and resource degradation, demonstrating that GGDP can be used as a primary measure of economic health and can measure the impact on climate mitigation.

Sustainable economic development is desirably terrible for improving social welfare. It implies that economic development should not be at the cost of environmental degradation, but rather environmental sustainability should be maintained. This study has examined the green growth, environmental quality, and energy consumption nexus in 38 OECD countries using panel data from 1991 to 2020. We have estimated two models. The first model explores the impact of green growth on environmental quality and the second model probes the link between non-green growth and environmental degradation. For this purpose, the ARDL technique has been used to estimate the results. Green growth has not followed the environmental Kuznut Curve theory while Non-Green growth has validated the environmental Kuznut Curve theory. Furthermore, Environmentally friendly technological innovation, renewable energy consumption, environmental-related tax, and human capital turn out with negative signs while foreign direct investment and trade openness are positively related to environmental degradation. The study also suggests policies to decarbonize or minimize the emissions in the economies.

IntroductionGross Domestic Product (GDP) is the most well-known and widely used measure of a country’s economic health. However, GDP fails to account for the depletion of natural resources and the environmental damage that occurs in the pursuit of economic growth, leading to an incomplete and potentially misleading picture of a nation’s well-being. To address this shortcoming, Green GDP (GGDP) is proposed as a more comprehensive indicator that incorporates environmental factors into the economic assessment. This study builds on extensive literature reviews, internationally accepted GGDP accounting methods, and scholarly research to propose a new GGDP calculation model that better reflects a country’s sustainable development.MethodsThe proposed GGDP model is divided into two main components: natural resource loss and environmental pollution loss. Each component is further broken down into primary factors that are condensed into 13 sub-criteria reflecting a country’s capacity for sustainable development. Principal Component Analysis (PCA) is utilized to identify the most representative factors from these sub-criteria and to analyze the relationships among GGDP, these factors, and global mean temperature. Additionally, the Integrated Environmental Sustainability Index (IESI) is used to develop a global temperature mitigation prediction model, which considers the impacts of epidemics, sea and land temperatures, and variations in climate across different regions.ResultsThe analysis shows a 74% probability that positive GGDP growth correlates with temperature changes over a 50-year period, indicating that economic activities measured by GGDP are linked to climate change. The GGDP model reveals significant differences between global GDP and Green GDP, with the latter growing at a much slower rate. This slower growth of Green GDP is primarily due to the declining share of GDP from natural resource-dependent activities, which has fallen from 90% in the 1970s to 80% in 2020. This trend underscores the increasing gap between traditional economic growth and sustainable development, suggesting that as countries continue to rely on natural resources, their overall ecological efficiency declines, environmental pressures increase, and the potential for long-term sustainable development diminishes.DiscussionThe findings demonstrate that all factors within the GGDP model are proportional to global temperature, underscoring the significant impact that natural resource utilization and pollution emissions have on economic growth and climate change. The study further evaluates global sustainable development by considering both economic and environmental perspectives. Using Brazil as a case study, the model is applied to assess the values of each component within the GGDP framework, providing a comprehensive analysis of the country’s sustainable development challenges and potential solutions. This approach establishes a method for assessing sustainable development that can be adapted for use in other countries, offering a path forward for integrating environmental considerations into economic policies.

According to the theory of economic growth and economic growth accounting models(Barro,1999),we conduct a research on the general economic growth accounting for Shanghai,and in order to analyze the sustainable development problems such as green economic growth accounting,we make a study of the green GDP economic growth accounting models(Asheim,2000).Some important results concerning the calculation research on the economic growth of Shanghai are obtained.Firstly,before implementing reform and opening policy,the achievement of Shanghai's economic growth was mostly supported by the input of capital,human resources and labors.And wage policy ensured the input of human resources because of planned economy,but it failed to cause technological progress.After the reform and opening,the achievement of Shanghai's economic growth was benefited from the technological progress caused by some reasons such as institutional innovation and so on,but interfered by the revenue policy.Secondly,Shanghai's green NNP value is far lower than the GDP value,and the latter is at least 2 to 4 times of the former.The ratio between Shanghai's GDP value and green NNP value was maintained more than 3 times that in the 1960s, 1970s and 1980s.In recent years,the ratio reduced to a relatively rational level,being around 2 times between Shanghai's GDP value and green NNP value.This shows that people have awared to pay more attention to the environmental problems and resource wasting problems,and have taken actions to protect environment and reduce resource wasting.Thirdly,at present,we believe that,because of the accounting results of Shanghai's green NNP,green GDP should not be used as a unique index of measuring economic development,but it can be used as an index of measuring the effect on environment and the wasting of resource by economic development as well as a supplement for the GDP index.

Rapid economic development accompanied by resource depletion and environmental degradation is becoming a serious challenge to the sustainable development of countries, including Vietnam. Currently, Vietnam is facing many problems such as environmental pollution, natural disasters, climate change and especially the great impact of the Covid-19 pandemic, which has a profound impact on the economy and society. To achieve sustainable development, green growth, that is, economic growth associated with building a low-carbon society and protecting the environment, is considered the right and long-term choice. Green growth not only helps sustainable economic development but also reduces poverty, especially in developing countries. This is a development model that allows these countries to develop their economies quickly, shortening the gap with developed countries while still ensuring against environmental degradation. Recognizing the importance of green growth, Vietnam has been implementing related strategies and achieving some positive results. The article focuses on analyzing lessons learned about green growth from countries around the world and providing policy implications for Vietnam. Thereby, the article will provide analysis, theoretical basis and current situation in Vietnam, as well as international experience in green growth strategy. Finally, the article proposes recommendations and solutions to create conditions for Vietnam to shorten the development gap with advanced countries, promoting rapid and sustainable economic growth.

PurposeIn September 2015, the UN member states approved an ambitious agenda toward the end of poverty, the pursuit of equity and the protection of the planet in the form of 17 Sustainable Development Goals (SDGs) and 169 targets. The purpose of this paper is to raise a concern about the context and framework that science, technology and innovation have in the finalized text for adoption that frames the SDGs especially regarding environmental degradation. The authors argue that emphasizing technology transfer in the agenda has the risk to do not recognize other technological alternatives such as eco-technologies, and endorse a limited vision of the role of science and innovation in the achievement of the SDGs. Science for sustainability has to go further than technology transfer, even questioning the limits of the current patterns of intensive use of natural resources and inequity in consumption. By discussing the historical backgrounds of this paradigm and elaborating on the role of science to achieve sustainability in a broader sense. It is in these terms that inter- and intra-discipline and the roles of researchers in sustainability transitions acquire relevance.Design/methodology/approachAlthough many theories regarding human development are in place and under discussion, the dominant view, reflected in the UN agreement, is that the progress of a country can be measured by the growth in the per capita gross domestic product. This variable determines if a society is able to reduce poverty and satisfy its basic needs for present and future generations (Article 3: United Nations (UN), 2015). Progress and economic growth in several aspects of human development has been substantial over the past 40 years. However, at the same time, the state of the environment continues to decline (UNEP, 2012). The obvious inquiry of these opposing trends is whether progress irremediably comes at the cost of environmental degradation. In 1972, the Club of Rome’s report entitled “Limits to growth” (Meadows et al. 1972) confronted the viability of perpetual economic growth. The report alerted of the impossibility of endless growth in population and production in a finite planet (Gómez-Baggethun and Naredo, 2015). The essay forecasted future crises of food and energy if the population and economic growth continued to grow at the same rate of the first half of the twentieth century. Nevertheless, the catastrophic projections were not met, mostly because of great advances in agriculture, water and energy technologies.FindingsThe SDGs constitute a relevant international recognition of the importance of the three edges of sustainable development. However, the pathways toward the achievement of the SDGs need to fully recognize that poverty, inequalities and global environmental problems are expressing a deeper crisis in the shape of economic growth, patterns of production and consumption and, in general, the logic of no limits in the exploitation of natural resources (Sheinbaum-Pardo, 2015). For this reason, the science of sustainability requires a deep understanding of the technological change and that technology is not the only approach toward sustainability.Research limitations/implicationsThe paper reflects a conceptual discussion of the narrow vision of science and technology in the SDGs and their UN framework. The most important objective in the UN documents is technology transfer. This has the risk to do not recognize other technological alternatives such as eco-technologies, and endorse a limited vision of the role of science and innovation in the achievement of the SDGs.Practical implicationsAn important discussion of the key points regarding SDGs is developed.Social implications“Transforming our world: The 2030 agenda for sustainable development (UN, 2015)” presents a narrow vision and a limiting role to the science of sustainability. Moreover, if these issues are not recognized, the achievement of the SDGs will continue to gain only marginal success.Originality/valueIt brings out a very important discussion of the role of science and technology in the ambitious UN agenda of the SDGs.

Due to substantial development in emerging economies over the last three decades, climate complexities are increasing which have posed serious threats to environmental quality and sustainability. To this end, eco‐innovation, green trade openness (GTO), and carbon price have been recognized as effective tools for environmental mitigation and promotion of green growth (GG) in the core of COP 26, Sustainable Development Goals 2030, and Carbon Neutrality by 2060. Considering this, the aim of this study is to investigate the influence of eco‐innovation, GTO, and carbon price on GG and low‐carbon emissions in emerging economies over the period 1996–2021. The current study provides a standard green Solow growth model by introducing a new GG index using the entropy weight method. This index incorporates 30 indicators across five dimensions which emphasizes the essential roles of the investigated factor. Additionally, the current study provides a new index for GTO utilizing an extensive green trading basket of 255 commodities. Due to the cross‐sectional dependency, and slope heterogeneity in the models, this study used dynamic heterogeneous panel data estimation techniques that is, cross‐sectional based augmented nonlinear autoregressive distributed lag, and nonlinear augmented mean group to probe the asymmetric effects. The outcomes from the empirical analysis reveal that positive shocks in environmental innovation, GTO, carbon price, and green energy mitigate carbon emissions and promote green economic growth while the negative shocks in these variables cause environmental degradation and reduce GG in emerging economies. Finally, from policy insight, this study suggests that policy makers in emerging economies should invigorate GTO, stimulate environmental innovation and green energy, implement carbon price mechanisms, and establish a balance between environmental protection and economic growth.

Economic growth became the buzzword for planners and policymakers after the great devastation of World War II. Every country, rich and poor was planning to achieve higher growth rate to reach the take-off stage (Rostow). In 1950s and early 1960s, economic growth and economic development were considered synonymous but later on, economic development acquired a wider meaning i.e., growth was associated with increase in goods and services while economic development included such important factors like education, health which impact quality of life. But even then, greater emphasis was on economic growth because right from Adam Smith to modern economists, growth was the basic condition of economic welfare. To achieve an ever-increasing growth, resources (natural and man-made) are/were continuously being exploited. But the question that became important here was whether this growth or in wider sense development, sustainable? With time, the form of resource use has changed from usage to exploitation negatively impacting the environment. Can this growth process be allowed at the cost of environmental degradation? So, concerns have been raised from time to time to address this issue. In this context, this paper analyses the impact of rising per capita income, population density and construction activities on carbon emissions (a proxy of environmental degradation) to check the applicability of Environmental Kuznets Curve (EKC) in case of India. Results suggest a positive significant relation between the dependent variable and the independent variables, indicating towards the applicability of EKC in short-run in case of India, but not in the long-run. KEYWORDS: Economic growth, sustainable development, Environmental Kuznets Curve, environmental degradation, carbon emission

Objective: The objective of this study is to examine the relationship between green finance and sustainable development in Morocco, focusing on its dual impact on economic growth and environmental preservation during the 2016–2022 perio[1]d. Theoretical Framework: The research is grounded in the theoretical frameworks of green growth and sustainable development, emphasizing the synergies between economic prosperity and environmental sustainability. The concepts of renewable energy consumption and green finance as catalysts for economic and ecological balance are central to the study. Method: A quantitative approach was adopted, employing a correlation matrix and the Granger causality test to analyze the interplay between green finance, GDP growth, and CO2 emissions. Data from 2016 to 2022 were used, capturing Morocco’s progress in renewable energy adoption and green finance initiatives. Results and Discussion: The findings highlight a significant positive correlation between renewable energy consumption, green finance, and economic growth, alongsFDI a reduction in CO2 emissions. The results underscore the strategic importance of green finance in fostering sustainable growth while mitigating environmental impacts. The discussion contextualizes these findings within Morocco’s sustainability agenda, emphasizing the potential for green finance to drive ecological and economic transformation in other emerging economies. Research Implications: This study provFDIs practical insights for policymakers and stakeholders, advocating for expanded green finance frameworks and renewable energy integration to support sustainable development. Originality/Value: By addressing the empirical gap in linking green finance with economic and environmental outcomes, this research contributes tothe literature and offers a roadmap for leveraging financial systems to achieve green growth.

China: Innovative Green Development, 2nd Edition, by AngangHu. Published by Springer Nature Singapore, Singapore, 2017, pp. 201, ISBN: 978‐981‐10‐2805‐2, AU$187.

The gross economic-ecological product (GEEP) accounting is crucial to promote the construction of ecological civilization, and practice the ideas of "lucid waters and lush mountains are invaluable assets". GEEP accounting had been conducted at national and provincial scales, but not at urban scale. According to the economic and ecological development, the GEEP accounting framework was built in Fuzhou City. The GEEP value of Fuzhou City in 2015 and 2018 was calculated and the spatiotemporal variation was analyzed. The results showed that the GEEP value of Fuzhou City was 1208.568 billion yuan in 2015. Among which, the value of GDP and ecological regulation, and the cost of environmental degradation and ecological damage were 577.742, 636.420, 3.095 and 2.500 billion yuan, respectively. Minqing County had the highest GEEP, with a value of 170.022 billion yuan, which accounted for 14.1% of that in Fuzhou City. The lowered values were found in Fuqing City, Minhou County and Yongtai County, accounting for 12.2%, 12.1% and 10.4%, respectively. In 2018, the GEEP of Fuzhou City increased to 1445.399 billion yuan, with an increase rate of 19.6%, mainly due to the GDP increase (up by 47.4% from 2015). The highest proportions of GEEP were observed in Minqing County and Gulou District (12.0%), followed by Fuqing and Minhou counties (11.0%). Compared with 2015, the increase trends were observed for the total value of GEEP, unit area and per capita of GEEP values in Fuzhou City. The cost of environmental and ecological degradation in Fuzhou decreased by 7.2% and 12.4%, respectively, indicating that the overall ecological environment of Fuzhou was improving. The accounting of GEEP in Fuzhou could effectively make up for the shortage of GDP assessment at the urban scale in China. It could provide an instrument for Fuzhou government to formulate rational ecological civilization assessment system and promote regional sustainable development.