Comparison of GDP Accounting Flaws in Cod and Indonesian Forest Depletion
A direct parallel exists between the economic accounting of the Grand Banks cod fishery and Indonesian forestry. Both cases highlight a significant flaw in standard GDP calculations. The revenue generated from selling the natural resource—be it cod or timber—is included in GDP, but the corresponding loss from the depletion of the natural capital stock is not subtracted. This failure to account for the depreciation of natural assets results in an overestimation of the net economic benefit and masks the unsustainable nature of the activities.
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Impact of Natural Resource Depletion on Indonesia's GDP and Growth Rate (1971-1984)
Comparison of GDP Accounting Flaws in Cod and Indonesian Forest Depletion
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Comparison of GDP Accounting Flaws in Cod and Indonesian Forest Depletion
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