Do GDP figures include depreciation of infrastructure?

Question:

Do GDP figures include depreciation of infrastructure? What about other forms of depreciation, eg. consumption of non-renewable resources, or consumption of renewable resources at a greater than the sustainable rate?

Answer:

There is a large literature that attempts to adjust the various conventional measures of economic growth for the effects of environmental degradation. There is a useful Wikipedia page on the topic (https://en.wikipedia.org/wiki/Green_gross_domestic_product).
 

Answered by
  • John F. Timmons Professor of Environmental and Resource Economics
Last updated on
March 9, 2018

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