Study on the Calculation Method of Green GDP to Measure the Economic Health

Abstract

This paper discusses the replacement of conventional GDP with green GDP (GGDP) as the main measure of economic health. Based on data on annual average temperature, annual precipitation, annual sunshine hours and annual average relative humidity for country C over the past decade, a multiple regression model is used to demonstrate that the linear effect of GGDP is positive for green growth. Further considering the differences in economic power between developed, developing and lagging countries, an infinite iterative game model of green GDP and conventional GDP is constructed based on the mutual constraints of long-term and short-term interests. Finally, considering the resistance to replacing GDP with green GDP, and in order to fully reflect the tortuous and complex relationship between climate change and social costs, an integrated model that will be embedded in the economic system, the DICE-2013R model, is constructed in order to achieve a shift from a single energy model to an integrated climate model. Normalising the data based on the model calcglobal scale.