Journalist: Professor Williams, some people argue that the GDP does not reflect the true nature of the economy. What’s your opinion of the GDP measurement?
Professor: The GDP is a core index in the calculation of a national economy. But it shows only whether the economy has grown in a region or a country. What isn’t taken into account is the price being extacted from our natural resources and environment to support growth. China’s more than eight percent annual GDP growth in the past depended a lot on high energy consumption and uncontrolled discharge of wastes.
Journalist: Can“green GDP” solve the problems?
Professor: As a brand-new method of calculating a national economy, the“green GDP” index system takes into consideration both the economy and environmental costs. It deducts environmental costs from the traditional gross domestic product. In other words, green GDP equals traditional GDP minus the costs of resources and environmental damage. Green GDP can be regarded as “the genuine GDP”, for it not only reflects economic growth, but also shows the quality of that growth.
Journalist: How will the“green GDP” influence enterprises?
Professor: The system will have direct and far-reaching influence on enterprises. Some enterprises attach importance only to costs directly related to their growth, but turn a blind eye to serious damage to resources and the environment. On the other hand, the macroeconomic departments need to analyze the real economic balance sheet. It is necessary for those departments to calculate the environmental costs in resulting from the activities of enterprises. The“green GDP”index system will effectively restrict an enterprise’s impulse to expand at the expense of resources and the environment. In the long run, the benefits green GDP brings will outweigh the demands imposed on enterprises. China is planning to introduce the“green GDP”index system to ensure balanced, sustainable development and secure the prosperity of future generations.
