Study On the Establishment and Potential Impact of GGDP Accounting System

Abstract

GDP is one of the best known and most commonly used indicators to measure the health of a country's economy, but the rapid growth of GDP does not adequately take into account resource and environmental factors. In order to choose an appropriate method to construct the GGDP, the article considers various indicators affecting the environment from multiple perspectives, and uses hierarchical analysis and global entropy weighting to calculate the importance of each indicator, assigning weights to each indicator, and through weighted summation can calculate the GGDP of each country, and compares the GDP and GGDP of five countries, followed by using regression models to calculate the two level The regression model was then used to calculate the contribution of the two first-order indicators to GGDP and GDP, and it was concluded that the use of GGDP accounting can reduce the cost of environmental downgrading and increase the benefits of environmental improvement. Finally, the benefits and drawbacks of using GGDP are summarized.