Gross environment Product (GEP)

Gross environment Product (GEP)

Gross Environment Product (GEP)


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


Need of GEP:

  • Rapid degradation of ecosystems, which led to adverse impacts on more than 60 per cent of services we get from the ecosystems in general.
  • Uttarakhand, through its biodiversity, gives services to the tune of Rs 95,112 crore per year to the nation. The state has over 71% area under forests.
  • Uttarakhand is a state which provides a lot of environment services and in continuity as a result of which, there is a natural degradation in those services.

Concept of (Gross Environment Product) GEP

  • It was established back in 1997by ecological economists like Robert Costanza at the global level.
  • It is an assessment system to measure ecological status.
  • It is considered as the product and service value that the ecosystem provides for human welfare and economic and social sustainable development, including provisioning, regulating and cultural ecosystem services.
  • Overall, GEP accounts for the economic value of the ecosystem in providing products and services, and it is one of the components of green GDP.
  • Green GDP is an indicator of economic growth with environmental factors taken into consideration along with the standard GDP of a country. It factors biodiversity losses and costs attributed to climate change.


Issues with Adoption of GEP

  • It may confuse policy makers and negate the past efforts.
  • The purpose of introducing GEP is not transparent.

Way Forward

  • Instead of introducing a well-defined concept of ecosystem services, planting a new term with no clear-cut narrative invites serious doubts on the intention of the government.
  • So, it is important that the state should be steady in approach, focusing on Ecosystem Services, which has global acceptance and a strong knowledge base.
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