Framework construction and application of China's Gross Economic-Ecological Product accounting

Abstract In order to integrate resource consumption, environmental damage and ecological benefits into the evaluation system of social and economic development, and practice the green concept of “Lucid waters and lush mountains are invaluable assets”, this research was based on the Green GDP and Gross Ecosystem Product accounting to develop comprehensive accounting indicators for Gross Economic-Ecological Product (GEEP). At the same time, the 2016 GEEP of 31 provinces in China is calculated. The results show that: 1) GEEP is a comprehensive ecological-economic accounting system based on weak sustainable development theory and welfare economics. GEEP follows the principle of GDP accounting and carries out value accounting for the final products of ecological and economic systems. Based on GDP, GEEP considers the ecological-environmental damage caused by human beings in economic product activities and the benefits of the ecological system to the economic system. 2) In 2016, China's GEEP was 126.6 trillion RMB, 1.6 times of GDP, among them, the cost of pollution damage was 2.1 trillion RMB, the ecological degradation cost was 0.69 trillion RMB, and the ecosystem regulating service was 51.4 trillion RMB. 3) The regional Gini coefficient based on GEEP was 0.44, which was 0.07 smaller than the regional Gini coefficient calculated based on GDP in 2016, thus GEEP accounting would benefit to shrink regional disparity. 4) Compared GEEP ranking with GDP ranking of all provinces, GEEP rankings in Inner Mongolia, Heilongjiang, Yunnan, Qinghai and Tibet have increased by more than 10 ranks compared with GDP, and Beijing, Shanghai, Tianjin, Hebei and Shaanxi, their GEEP ranking compared with the GDP ranking has descending more than 10 places.