GROSS ENVIRONMENT PRODUCT: UPSC Daily Important Topic | 6 March 2022

🔘GROSS ENVIRONMENT PRODUCT

The Uttarakhand government recently announced it will initiate valuation of its natural resources in the form of ‘Gross Environment Product’ (GEP).

BENEFITS OF INTEGRATING GEP IN THE ACCOUNTING SYSTEM

∆It is a better way to measure the status of ecosystem and can help us gauge our progress towards sustainable development.  

∆It will help us in our assessment of state of stress created by anthropogenic factors on eco-system and natural systems. Problems with in the implementation of GEP approach

∆Policy Failure

✓ Lack of recognition of ecosystem services in economic decision making, development planning, and resource allocation.

∆Market Failure

✓Inadequate or missing market for many ecosystem service.

∆Institutional Failure

✓ Insufficient compensation for ecosystem services .

∆Knowledge gaps

✓Challenges to provide economic value of ecosystem services, regulating and supporting services.