Green GDP adjusted indicator meaning – UGC NET Question

Green GDP is an attempt to modify traditional GDP by subtracting the monetary value of environmental damage and resource depletion. It reflects the idea that economic output achieved by degrading natural capital is not fully beneficial. By integrating environmental costs,it provides a more realistic picture of sustainable income. Therefore the description in the question corresponds to green GDP.

Option A:
Green GDP incorporates estimates of pollution damage,deforestation and other forms of ecological loss into national accounts. This helps policymakers see whether growth is achieved at the expense of future productive capacity. Because the stem emphasises adjusting GDP for environmental degradation,this term is the correct answer.

Option B:
Net national product adjusts gross measures for depreciation of physical capital but not necessarily for environmental depletion. It focuses on man made capital rather than ecosystems. Hence it does not fully capture the idea described in the question.

Option C:
Per capita income divides national income by population to indicate average income. It says nothing about environmental impacts or sustainability. Therefore it is not appropriate for the definition given.

Option D:
Balance of payments records a country’s financial transactions with the rest of the world. It deals with trade,investment and transfers,not with ecological accounting. Thus it does not match the concept described in the stem.