Application And Research On Green GDP Accounts Of Chenzhou City

Gross Domestic Production (GDP) refers to the sum of final product and service value, produced and provided by all constant units in a national or local scope accounting system within certain period. It is an important indicator for weighting the economic and social progress of the country or a region. However, the traditional GDP calculation system neglects the cost of natural resources and the environment. The obvious limitation of the system that takes product and service market value in exchange as the only assessment criteria, results in the false increase of the GDP indicators. Modification of the system is therefore urgently needed. Green GDP theory and calculation methods development is just such kind of efforts.Green GDP considers external influencing factors and natural resources on the basic of SNA, representing for more general welfare level. China is in the interim of revolution toward new SNA and SEEA. The applying of Green GDP accounts system will affect the area GDP layout in our country. There are different sorts of ecosystem and abundant resources in Chenzhou city. The economy development has depended on exhausting great natural resources, which results in environmental pollution and ecological destruction. New SNA should play an oriented role in altering such economy development mode.Society production, resources and environment are regarded as a holistic system following the systemic rule. Traditional GDP is adjusted by deduction of environment and ecology cost on the bases of green input and output theories, including the cost of resources lost, natural capital degradation, defending and the transferred value from economic capital to uneconomic capital. Series environmental economy methods are put into calculation. The conclusion is that 6.46% percent of Chenzhou city GDP in 2005 year comes from exhausting natural resources and environment. As a result, thegreen GDP is 446.85 hundred million. Because partial environment and ecology cost can not be counted exactly, the result of Green GDP is less than the fact. As deeper research, Green GDP accounts system should be established dynamically and perfected constantly.