GEP Per Capita: A Proposed Index for Environmental Protection

Throughout the history, environment has been continually altered by human activities. Environment has only become recognized recently when its deterioration is threatening the very survival and well being of mankind. It is now clear that a harmonious coexistence between human being and nature is quintessential. Thus various social instruments including laws, education, public relation, science and technology, have been mobilized towards environmental protection. Because of its global nature, environmental protection also needs international cooperation. In contrast to other global issues such as finance, one instrument missing in the environment protection is an index to show how each nation has advanced in the environmental protection. So, Gross Environmental Protection (GEP) is proposed as an index for comparing achievement of nations like GDP as an indicator of national economic strength. Formulation and use of GEP per capita should accelerate the global efforts towards the global environmental improvement.

Environmental problems have been widely discussed by the public as well as different professionals, from housewives and school children to scientists, artists and politicians. Governments around the world are enacting laws and implementing numerous programs on environmental protection and awareness. Industries are doing what they can to minimize environmental impacts, encouraging recycle, biodegradable and green technology. Schools are teaching environmental consciousness while non-governmental organizations voice their concerns with such topics as wide life conservation, nuclear waste and clean air. As environmental problems do not recognize national boundaries, international bodies and treaties are needed to deal cooperatively with ozone depletion, global warming, biodiversity and many more. Although some progress has been made in improving the environment, many problems persist and intensify. Undoubtedly, human activities from farming to industrialization and urbanization disturb the environment. More people, more environmental deterioration. Technology has also been blamed as a key cause of pollution. While international cooperation is necessary to slow the environmental destruction, arguments often arise as to which nations should do more, developing or developed nations. How can comparison among nations on their environmental efforts be compared? How can the progress be monitored? Such questions cannot yet be addressed without an acceptable mean of measurement of the environmental protection.

In contrast, the System of National Accounts (or SNA) is a set of accounts which national governments compile routinely to track the activity of their economies. SNA data are used to calculate major economic indicators including gross domestic product (GDP), gross national product(GNP) and trade balance figures. These data are valuable to policy analysis and economic monitoring purposes (1). Indices of stock exchange markets are daily indicators of public investment in business. Consumer price index (CPI) is another index of commercial performance. More can be added to the list of indices of financial health of a country. These indices allow more subjective analysis and comparison of economic development among nations.

To accelerate the environmental protection in different countries, it is necessary to have an index to show the efforts and the progress made in each country. The new index should also be related to the population who are primarily responsible for the environmental change. So it should appropriate to propose Gross Environmental Protection (GEP) per capita as such a new index. GEP should be calculated on the basis of values of efforts made by the government, private sector, non-governmental organizations and the public in assisting the protection of the environment of a nation. Comparison of annual GEP per capita will show the progress made during a period of time. With the values of GEP per capita, it will be possible to compare the contributions of nations in protecting the global environment. To the best of our knowledge, GEP is a new index.

Obviously, it will take more research and discussion to formulate a system to calculate the GEP per capita. However, some efforts have already been made and the these experiences should facilitate the future development of a suitable formula for GEP per capita.

Previously, “environmental accounting” or sometimes referred to as “green accounting”, “resource accounting”  or “integrated economic and environmental accounting” has been proposed to indicate the role of natural environment in the economy (1). However, it is not an index of the environmental protection.

GDP is the nation’s total domestic output of goods and services. It also includes expenditures for controlling pollution. For example, in 1972, the United States of America spent about 1.5 % of its GDP on pollution control. It has been estimated that the pollution control will cost the U.S.A. about 2.3 % of its GDP in the year 2000 (4). In term of values, the pollution control cost will rise from US$ 45 billions in 1972 to US$ 128 billions in 2000..From these figures, it will be possible to calculate GEP per capita of the U.S.A. Comparison between GDP per capita and GEP per capita will indicate how much of the economic growth of a nation has been reinvested back to the environmental protection. Annual GEP per capita will point to the trend in a national effort in environmental protection and improvement. Global environmental protection requires all nations doing their parts in protecting the environment. GEP per capita will facilitate international comparison and international agreement on proper share of the environmental responsibilities.

Science and technology have played important roles in accelerating economic growth and improve the well being of humanity. Technology has contributed to both the increased productivity and the rapid depletion of natural resources. Mass production activities, industrial and agricultural, and human living in densely populated areas inevitably generate waste and pollution. With GEP, it will be possible to identify the part of science and technology contributing to the pollution control and environmental protection. So a wide acceptance of GEP should help to intensify the future effort to advance the environmental science and technology.

Gross environmental protection (GEP) per capita is proposed as a new index to measure a nation’s efforts in environmental protection. GEP will facilitate comparison among nations on their roles in global environmental protection. It should also help highlighting the development of science and technology for pollution control and environmental protection.