Examining the Viability of GGDP as an Alternative to GDP as the Only Indicator of National Economic Development

Abstract

This paper studies whether GDP can be replaced by GGDP and become the sole indicator of the nation’s economic development. As we know, GGDP is a key indicator of measuring the country’s economic health. So the total amount of carbon dioxide emission was chosen as an index to measure the climate, and the correlation between the total amount of GGDP and the total carbon dioxide emission was analyzed using the Spearman correlation coefficient. We calculate the weight of each country’s total carbon dioxide emissions, using TOPSIS algorithm based on entropy weight method, and then carry out the least squares linear regression for the total carbon dioxide emission and GGDP in each country, and obtain the linear regression equation. Add the weights to the six linear regression equations, and get the linear regression equation of the total carbon dioxide emission and GGDP. Through the analysis of the resulting model, GGDP can be used as one of the criteria to measure the health of a country’s economy, because it can really reflect the impact on climate change and, under certain circumstances, the economic level. Due to the uncertainty and unfairness of GGDP, GDP as a measure of national economy is still the mainstream and cannot be replaced by GGDP.