The Gross Ecosystem Product (GEP) is an innovative metric developed to account for the economic value of ecosystem services within broader economic evaluations, traditionally measured by Gross Domestic Product (GDP). While GDP provides a quantitative measure of all goods and services produced economically within a country, it does not consider the ecological services that underpin economic output. GEP addresses this oversight by measuring the contribution of ecosystems through direct products, regulation services such as climate control, and cultural services like tourism.[1][2]
Overview and application
China introduced a national standard for GEP in 2020, integrating ecological values into its economic assessment framework. This initiative has led to its adoption at several governmental levels. By 2023, 15 local governments in China had developed guidelines to implement GEP, initiating approximately 200 related projects. In Zhejiang, the first province to implement these rules, the performance of local officials is evaluated in part by the economic values assigned to local ecosystems, such as a US$43 million value attributed to the Chengtian Radon Spring Nature Reserve.[2]
GEP is also used in economic modeling to provide a comprehensive view of the interplay between economic and ecological health. For example, the MAGNET model, developed by the Joint Research Centre (JRC) and Wageningen Economic Research, incorporates GEP to analyze how policies can simultaneously affect economic output and ecosystem conditions. This model helps policymakers make informed decisions that strive to harmonize economic development with environmental sustainability.[3]
The ongoing development of GEP aims to improve its precision and practicality in economic and environmental policy-making. By assigning monetary values to ecosystem services, GEP facilitates a deeper understanding of their critical role in sustainable economic development. This approach ensures that strategies for economic growth also support ecological well-being, emphasizing a balanced approach to development.[3]
See also
- Ecological economics
- Sustainability metrics and indices
- Sustainability measurement
- Ecological footprint
- Environmental accounting
- Environmental Performance Index
References
- ^ Wenjia, JIN. "GROSS ECOSYSTEM PRODUCT" (PDF). International Union for Conservation of Nature (IUCN). Retrieved 9 April 2024.
- ^ a b Mengnan, Jiang. "Zhejiang counts 'gross ecosystem product' of nature reserve". China Dialogue. Retrieved 7 April 2024.
- ^ a b "Beyond GDP: including nature in economic policy assessment - European Commission". joint-research-centre.ec.europa.eu. 2024-05-28. Retrieved 2024-05-29.
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This page was last edited on 29 May 2024, at 07:02