GUEST COLUMN
Vir Singh
In our contemporary world, most nations assess their economic progress using Gross Domestic Product (GDP). However, Bhutan stands out by adopting Gross National Happiness (GNH) as the cornerstone of its socioeconomic development and national pride. Not long ago, the State of Uttarakhand introduced a distinctive economic assessment method—Gross Environment Product (GEP). This makes Uttarakhand the first state in India to adopt GEP as a measure of its economic health, setting a precedent for the nation and the world. Although partially implemented in Costa Rica and a few other regions, this initiative, championed by botanist and environmentalist Anil Prakash Joshi along with the Uttarakhand administration, has yet to gain widespread attention despite its significance.
As global challenges of economic growth and environmental sustainability intensify, there’s a rising acknowledgment of the need to reconsider traditional economic metrics that often overlook environmental impacts. While GDP remains a prevalent measure of economic performance, it fails to account for the environmental costs and benefits linked to economic activities. In contrast, GEP offers a meaningful alternative by quantifying the contributions of natural ecosystems to the economy and overall welfare, including human well-being.
Mahatma Gandhi advocated for an “economy of need rather than of greed,” and Sunderlal Bahuguna emphasised that “ecology is sustainable economy.” Whether Uttarakhand’s focus on GEP can inspire a new philosophy for the socio-economic progress of the state and country remains to be seen. Unlike GDP, which solely focuses on economic output, GEP offers a comprehensive assessment by incorporating environmental factors. This concept recognises that healthy ecosystems are vital for attaining sustainability in socioeconomic development. By valuing ecosystem services, GEP provides a holistic view of a country or region’s wealth and sustainability.
Adopting GEP in alignment with natural laws can promote sustainable national development practices. By highlighting the economic value of maintaining healthy ecosystems, policymakers and businesses are encouraged to prioritise conservation and sustainable resource management. This shift could foster more balanced and long-term development strategies that harmonise economic growth with environmental stewardship. GEP serves as a vital tool for policymakers by providing concrete measures of the sustainable benefits derived from ecosystems. This information can guide decisions on land use, conservation efforts, and infrastructure development. For instance, GEP can justify investments in green infrastructure, such as afforestation projects, by demonstrating their economic value in flood mitigation and water purification.
While GEP’s concept may vary by region and cultural context, its calculation generally involves multiple steps and methods reflecting the complexity and diversity of ecosystem services. Common valuation approaches include market-based valuation, replacement cost method, contingent valuation, and benefit transfer. The goal remains eco-centric, sustainable socio-economic-cultural development. In Uttarakhand, the GEP encompasses indices related to water, air, forest and soil quality, reflecting the administration’s commitment to environmental ethics.
Some countries are exploring the use of GEP to enhance their efforts in natural resource management. China, Costa Rica and the United States are notable examples. China, a pioneer in GEP adoption, has implemented pilot projects in various provinces to measure the economic value of ecosystem services. In Qinghai province, GEP assessments have valued water supply, carbon sequestration and soil conservation in the Sanjiangyuan region, known as the “Water Tower” of Asia. Costa Rica, in its traditional approach to biodiversity conservation, has integrated ecosystem service valuation into its national accounting framework. By valuing services like tourism, water resources and carbon sequestration, Costa Rica has bolstered its sustainable tourism policies and payment for ecosystem services (PES) programmes.
In the United States, states and municipalities have explored GEP to aid in environmental protection and policymaking. For example, New York City used GEP to evaluate its urban forest’s benefits, such as improved air quality, stormwater management, and energy savings, justifying investments in tree planting and maintenance programmes.
Implementing GEP as actionable policies requires political will and institutional capacity. Governments and organisations must commit to integrating GEP into their planning processes and aligning economic incentives with environmental sustainability. Uttarakhand chief minister Pushkar Singh Dhami has announced constituting a GEP cell to monitor and ascertain GEP implementation. There is a need to integrate GEP with NITI Aayog and apply it nationwide. The fragile Himalayan ecosystem is crucial for India’s sustainable progress, and all Himalayan states should adopt strong political will to implement GEP policies. The Uttarakhand State of the Indian Union is nestled in the centre of the Himalayas, the youngest, the highest and the most fragile mountain range on planet Earth extended into the boundaries of eight Asian countries – Afghanistan, Pakistan, India, Tibet (China), Nepal, Bhutan, Bangladesh and Myanmar. What could be the best in the Himalayas is there in Uttarakhand, the exceptionally rich geographical entity endowed with nature’s bounty. The entire Himalayan region, in fact, badly needs entirely distinctive eco-centric, conservation-oriented, and biodiversity-enhancing development intervention. A GEP-centric development intervention and socioeconomic valuation is certainly a promising path to an ecologically sound, environmentally safe and economically vibrant future of the Himalayan Region. How well the Uttarakhand State nourishes its policy and how the other Himalayan states follow the suit is yet to be seen.
Gross Environment Product provides a revolutionary method for balancing economic growth with sustainability. By valuing the diverse benefits provided by natural ecosystems, GEP bridges the gap between economic development and environmental protection. It has the capacity to reform policies, steer sustainable practices, and foster a more balanced relationship between humans and nature. Adopting GEP is not only an economic imperative but also a moral obligation to protect the planet for future generations.
(The author is professor emeritus, environmental science, GB Pant University of Agriculture and Technology. Views expressed are personal)
