Green GDP

Green GDP is a term used generally for expressing GDP after adjusting for environmental damage.  

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. 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.
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.
The process envisaged by Ministry of Environment and Forest does not require any change in the core System of National Accounts (SNA), and is achieved by establishing linkages between the two through a system of satellite accounts (called Satellite accounts as it adds new information to core accounts). For example, Environmental Satellite Accounts link measures of emissions, material use, costs of remediation and environmental taxes to measures of economic activity. Satellite accounts are a framework that enables attention to be focused on a certain field or aspect of economic and social life. They are produced in the context of national accounts but are more flexible as they allow concepts, definitions, accounting rules and classifications to be changed, where it improves analysis.