Brazilian gross domestic product adjusted by the depreciation of agricultural soil

Abstract

Accounting for the depletion of environmental assets, which it uses to support economic growth, is allowed to consider environmental passivity in the measurement of the Green Gross Domestic Product (GGDP). The aim is to measure the depletion affected in the active environmental soil, regarding the NPK balance and its impact on national production. Nutrient inflows and outflows were monetized and introduced into the Brazilian Social and Environmental Accounting Matrix for 2010. By representing a negative externality, the positive balance of the Soil Nutrient Balance of the soil allowed the application of Brazilian GGDP below GGDP at R$ 4,176 million. It can also be stated that, for each increase of one million reais in the export of agricultural products, the other productive sectors are induced to increase production that would amount to R$ 5,329.5. However, this increase in production may lead to a reduction in soil fertility equivalent to R$ 10,760.69, which is fully replaced by nutrient application devices.