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" ... To argue this slightly differently. It's a common complaint from environmentalists that GDP counts cleaining up pollution as an addition. But it doesn't count the original destruction as a loss. Entirely true. And GDP is counting the economic activity which is going on which is adding value - cleaning up pollution adds value, that's why we do it of course, so clean ups are additions to GDP. But because our measure is gross we're not counting that reduction in assets from the original pollution. The environmentalists are entirely correct. The answer is that we should be using a net measure which includes the loss of value from the original destruction. ... "