Green Gross Domestic Product (Green GDP) is an index of economic growth with the environmental consequences of that growth factored in.
From the final value of goods and services produced, the cost of ecological degradation is deducted to arrive at Green GDP.
In 2004, Wen Jiabao, the Chinese premier, announced that the green GDP index would replace the Chinese GDP index. But the effort was dropped in 2007 as it was seen that the conventional growth rates were decelerating.
Green GDP monetizes biodiversity loss and also accounts for costs attributed to climate change. A few environmental experts prefer physical indicators (like “carbon dioxide emissions per year” or “waste per capita”), which may be aggregated to indices such as the “Sustainable Development Index”.