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The Non-Market Benefits of Nature: What Should Be Counted in Green GDP?

  • Boyd, James W.

    ()

    (Resources for the Future)

Green gross domestic product (green GDP) is meant to account for nature’s value on an equal footing with the market economy. Several problems bedevil green GDP, however. One is that nature does not come prepackaged in units like cars, houses, and bread. Even worse, green GDP requires measurement of the benefits arising from public goods provided by nature for which there are no market indicators of value. So what should green GDP count? That is the subject of this paper. Ecological and economic theory are used to describe what should be counted—and what should not—if green GDP is to account for the nonmarket benefits of nature.

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Paper provided by Resources For the Future in its series Discussion Papers with number dp-06-24.

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Date of creation: 03 May 2006
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Handle: RePEc:rff:dpaper:dp-06-24
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  1. H. Spencer Banzhaf & James Boyd, 2012. "The Architecture and Measurement of an Ecosystem Services Index," Sustainability, MDPI, Open Access Journal, vol. 4(4), pages 430-461, March.
  2. Aart de Zeeuw & Erwin Bulte & John List & Shelby Gerking, 2004. "The effect of varying the causes of environmental problems on stated wtp values: Evidence from a field study," Framed Field Experiments 00134, The Field Experiments Website.
  3. Boyd, James & Banzhaf, H. Spencer, 2006. "What Are Ecosystem Services?," Discussion Papers dp-06-02, Resources For the Future.
  4. Karl-Göran Mäler, 1991. "National accounts and environmental resources," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 1(1), pages 1-15, March.
  5. Zvi Griliches, 1992. "Output Measurement in the Service Sectors," NBER Books, National Bureau of Economic Research, Inc, number gril92-1, June.
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