The way we measure economic health is flawed, according to new research from the Stanford-based Natural Capital Project.
The way we measure economic health is flawed, according to new research from the Stanford-based Natural Capital Project. When we talk about a country’s economic prosperity, we’re almost always referring to gross domestic product, or GDP, a calculated value based on the goods and services that flow through an economy. But GDP doesn’t account for many of the benefits that people and economies receive from nature, like clean water and climate security.
To address this economic gap, Stanford researchers developed a new metric for measuring the value of nature’s contributions to economic activity. Their study, published in Proceedings of the National Academy of Sciences, details how the approach, known as Gross Ecosystem Product (GEP) is being successfully implemented in China.
“We’re basically flying blind when it comes to knowing where and how much nature to protect,” said the study’s senior author Gretchen Daily, a professor of environmental science at Stanford’s School of Humanities and Sciences.
“GEP tracks the vital contributions of nature to society, informs investments in securing them and helps evaluate the performance of leaders and policies,” added Daily, who is also the faculty director of the Natural Capital Project, an interdisciplinary partnership that helps governments and organizations integrate the values of nature’s contributions into economic and development plans.
Read more at Stanford University
