Impact of trade liberalization on Green GDP

One of the most influential of the national economic indicators is gross domestic product, But since this measure does not consider the costs of eliminating pollution and the negative effects of environmental, has been criticized. In the other word, GDP is not an appropriate criteria for measuring economic welfare, so green GDP has been introduced for measuring of economic welfare. Major objective of green GDP is the accounting systems that are provided an exact and correct criteria of economic welfare. In this paper, to assess the impact of trade liberalization on green GDP, we used the Autoregressive Distributed Lag approach and time series data over the period 1357-1388. The results of estimating model show that increased trade liberalization leads to an increase in green GDP, So that elasticity of green GDP to the trade liberalization in the long term and short term respectively is 0.082 and 0.044.