Gross Environment Product Index (GEP Index):

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Context

• Uttarakhand has achieved a groundbreaking milestone by launching the Gross Environment Product (GEP) Index.
• Thus, Uttarakhand has become the first state in India and globally to move beyond traditional ecosystem services to include ecosystem growth.

GEP

• Unlike conventional methods that only assess the benefits derived from the environment, the GEP Index also accounts for the contributions made back to the environment.

The Brain Behind the Index

• Anil Prakash Joshi, founder of the Himalayan Environmental Studies and Conservation Organisation, spearheaded the creation of this index.
• His goal was to develop a formula as understandable and widely accepted as the Gross Domestic Product (GDP) formula. The GEP Index is based on four pillars: air, soil, trees, and water.

Formula and Application

The GEP Index is calculated using the formula:

GEP Index = (Air-GEP Index + Water-GEP Index + Soil-GEP Index + Forest-GEP Index)

• To illustrate, in forest assessments, it isn't merely about counting trees.
• New trees are categorized, with more valuable species like broad-leafed trees given greater weight.
• The average survival rate and the number of trees felled are also factored in.
• This method may require refinements to traditional forest cover calculations.
• Similarly, for water, the index accounts for both natural processes and human-made conservation efforts, such as the construction of Amrit Sarovars.

Critical Perspectives

• Despite its innovative approach, the GEP Index has faced criticism.
• Ganga Avahan movement argues that the index may oversimplify the complex relationship between human activities and ecological impact. It suggests that activities should be categorized and regulated based on their environmental impact, to avoid justifying potential ecological damage.

Conceptual Strength

• GEP offers a meaningful way to assess the contributions of ecosystems to the economy and human well-being by translating diverse ecological services into a single monetary value.

Challenges

• There are concerns about the scientific rigor behind the GEP formula and its broader application.
• Some experts question whether the methodology is fully transparent or whether it will be applicable at a national level.
• Environmental scientists raise concerns about how the GEP Index would account for regional differences and challenges.

Closing remarks

• The true effectiveness of the GEP Index in practical applications remains to be seen, as it continues to evolve and be tested in real-world scenarios.

READ MORE ON THIS CONCEPT: https://www.iasgyan.in/daily-current-affairs/gross-environment-product 

PRACTICE QUESTION Q. Gross Environment Product (GEP) is a relatively new concept aimed at measuring the economic value of environmental services and resources. Discuss the significance of GEP in evaluating sustainable development.

SOURCE: THE WEEK