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GDP Input: Oil & Coal Production and a Shift to Green Tech

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How does oil and coal production currently show up in GDP? How would this change if a country shifted to a measure of "green GDP"?

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Solution Summary

The expert discusses how oil and coal production currents shows up in GDP and how GDP would be affected with a shift to green technologies.

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Gross Domestic Product (GDP) only takes into account final goods, not inputs or resources used to produce final goods. Currently oil is used to manufacture all sorts of final products such as tires, refrigerators, and televisions. It is also refined to be used as crude oil products like motor oil or gasoline. In all these examples, it is counted in ...

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Robert Reinhart, MBA
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  • BA, Univ of Cal, Irvine
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