Concepts and empirical calculation of the green GDP for Thailand

Green GDP is an indicator of sustainable development and environmental accounting via the green economy concept. This article aims to present a method for calculating green GDP according to the Herman E. Daly formula and its empirical calculation for Thailand. Such calculation relies on the output distance function via stochastic frontier analysis (SFA) to estimate the elasticity of good and bad outputs before computing the shadow prices of air pollution and water pollution and calculating green GDP succession. The findings of this study indicate significant elasticity of around 0.1146 for air pollution and 0.1915 for water pollution. During a period 1997-2016, green GDP when focusing on the pollution cost and resource depletion reveals an average value of around 4,807,994.45 million baht (137,371.27 USD million) with an average gap from GDP approximately 33.59%. The average ratio output per pollution cost was around 2.99 million baht per mg/kg.