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Abstract

The paper provides a methodology that is feasibly implemented for integrated environmental-economic (or 'green') GDP accounting and productivity measurement. The shadow prices for environmental inputs, which enable us to calculate green GDP and to design a pollution tax scheme and tradable permit system for social optimum, can be derived. The development of the statistics of green GDP and green productivity growth provides a fundamental component of policy-making for socially optimal growth and of formulating the market mechanisms for environmental management.

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