“c04EconomicActivity_PrintPDF” — 2022/5/28 — 13:00 — page 67 — #67
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FIGURE 4.35 International comparisons of living standards using the Human Development Index (HDI)
Source: Based on data from Human Development Report 2020, The Next Frontier: Human Development and the Anthropocene, United Nations Development Programme, pp. 343–346.
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4.15.3 Green GDP as an indicator of living standards
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Another alternative measure of living standards is green GDP. This is calculated by using data for real GDP and subtracting the estimated value or cost of environmental damage (e.g. depletion of resources, the costs of climate change and the loss of biodiversity) in producing a nation’s GDP.
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One attempt at this measures the real value of goods and services or GDP produced (converted to common US$) per ton of carbon emissions. This also reveals information about a nation’s contribution to climate change. Not surprisingly, low-income countries usually have the greenest GDPs. Overall, the hope is to reveal a broader picture of our general wellbeing, rather than simply using real GDP.
TOPIC 4 Economic activity
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