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Answer on Macroeconomics Question for Matthew A Norotsky

Question #36463
do gdp measurements correct for the social costs of environmental pollution
Expert's answer
Richard Stone, one of the creators the original GDP indicator, suggested that while “the three pillars on which an analysis of society ought to rest are studies of economic, socio-demographic and environmental phenomenon,” he had done little work in the area of environmental issues.
Genuine Progress Indicator, or GPI, is a metric that has been suggested to replace, or supplement, gross domestic product (GDP) as a measure of economic growth. GPI is designed to take fuller account of the health of a nation's economy by incorporating environmental and social factors which are not measured by GDP.

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