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Abstract

Conventional measures of gross domestic product (GDP) fail to account for the effect of economic activity on the environment. Integrated environmental-economic (or 'green') GDP is calculated using a data-envelopment-analysis (DEA) framework. For this purpose a dynamic cross-country technology is specified and estimated. Deriving Green GDP involves subtracting the inner product of the vectors of shadow prices and environmental degradation variables from conventional GDP.

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