What is Green GDP? Currently, different definitions exist.
Basically, it is an adjustment of traditional GDP, deducting
resource and environmental costs in economic activities.
Although specialists hold different opinions on just what Green
GDP is, they do agree on two things about it, said Ma Zhong, deputy
director of the Environment and Natural Resources School of Renmin University of China.
First, it provides us with another perspective on GDP, and one that
can improve environmental protection and rational resource
utilization. Second, sustainable development is the emphasis of
Green GDP, and this involves not only our generation, but also all
future generations.
The emphasis on natural resources and the environment in Green
GDP does not diminish the importance of economic development. What
it speaks to is reasonable economic development on the premise of
resource and environmental protection, said Ma.
China is gradually developing a Green GDP statistical system
with Chinese characteristics. However, there are some obstacles.
For instance, how do we judge whether a factory discharges sewage
in accordance with the regulation? Can we strictly enforce the
regulation when we detect a violator? Issues like these can be
resolved with relative ease.
What remains difficult is calculating resource and environmental
costs, according to Ma. Ecological or health damage caused by
industrial pollution may take years to appear. It is impossible to
pinpoint the year in which there are no environmental costs
incurred as a result of pollution. There are situations in which an
enterprise's pollution does no harm locally, but damages more
distant areas. Pollution may be aggravated or ameliorated by
natural influences such as wind or rain.
Indeterminate factors such as these make the calculation of
Green GDP difficult, if not impossible. Yet we must quantify these
factors as accurately as possible to make the Green GDP system
work.
There are two preliminary steps that must be taken before
accomplishing this, Ma noted.
"We need to define our 'family property': that is, the available
pollution capacity in our air and water. As long as discharge of
pollutants does not exceed this capacity, there will be no
environmental degradation. Once we know this capacity, we can
calculate the maximum permissible pollutant discharge, which would
serve as the basis for government regulation.
"Then we need to put a price tag on resources and the
environment by clarifying the ownership of property rights. For
example, after defining property rights to land, forest, or water,
it will have a specific value through lease or trade.
"The government may then slice the maximum permissible
discharge into a certain number of pieces, that is, rights to
discharge pollutants. These rights could be sold, auctioned or
otherwise allotted. A market for pollution discharge rights may be
established so that these rights could be traded legally. The
market, in turn, will determine the price of the
environment."
Clarifying ownership of property rights is closely linked to the
marketization of the economy. "This means that we could expect our
GDP to become greener and greener as improvements to the economic
system continue and the resource and environment market are built,"
he said.
It can be useful to study other countries' experiences in
implementing Green GDP programs.
Norway has been calculating the costs of resources and
environment since 1978. Resources and environmental pollution
included in its calculations are mainly mineral, biological, fluid
(water power), land, environmental resources and air pollution, and
two water pollutants (nitrogen and phosphorous). A comprehensive
statistical system has been established that includes energy,
existing fishes and forests, air emissions, wastewater (mainly
domestic sewage and polluted water from farming), recycling and
environmental expenditure. This lays a solid foundation for a Green
GDP statistical system.
Now let's look at a developing country. Mexico began its GDP
program in 1990. Its calculation covers all types of land
resources, water, air, soil, forests and oil. The indices and data
obtained on the amount of these natural resources and changes that
take place in them are then transformed into indices in terms of
currency.
(China.org.cn by Ni Xiaoqiang, June 1, 2004)