Green GDP Indicator with Application to Life Cycle of Sugar Industry in Thailand

Abstract

The objective of this study was to develop new indicators that reflect economic growth by taking into account the impact on the environment and natural resources as well. The indicator calculated by subtracting environmental cost from the “Gross Domestic Product (GDP)” and is used in the assessment of the GDP by taking into consideration the cost of natural resources and the environment, called “green GDP”. This study uses Life Cycle Assessment, which is a technique used to assess the environmental impact of sugar industry from raw materials, distribution, production, and waste management. The system boundary for the life cycle inventory are cultivation, planting, transportation and sugar production. The results of the green GDP and GDP is difference about 6–12% due to the depletion cost resulting from the use of natural resources between 9.0–9.52 $/ton of sugar production and the degradation cost caused by the airborne emission and waterborne emission between 37–57 $/ton of sugar production. The quantity of Total Suspended Particulate (TSP) generated from the sugar production process is the main causing the environmental cost about 55%. In order to solve environmental causes, the policy making as Circular Economy Strategies can be used to meet the sustainable development in the future.