Yin, Jason Z.2019-09-252019-09-252009-10-1220081940-1485http://hdl.handle.net/20.500.12424/173703By most measures, the environmental challenges confronting China are at least as serious as those confronting many other nations in the world. A measure of Green GDP will almost certainly give policy-makers and the interested public a more defensible estimate for the extent and scope of environmental challenges. Based on a review of the two strategies in combating pollution, this paper suggests that a combination of governmental intervention and free-market operation could be a better strategy to reverse China’s heightening environmental challenge. The thrust of this article is to suggest that while a better macroeconomic estimate may be helpful in motivating governments to act, a more microeconomic approach at the corporate level may yield more useful results both in terms of understanding the problem and in planning the steps that are likely to be needed in achieving a more acceptable solution. Keywords: GDP (Gross Domestic Product,) free-market school, government intervention school, Green GDP auditing, TEV model (Total economic value model)engWith permission of the license/copyright holderecologyeconomic ethicssocial ethicsresponsibilityEconomic ethicsCommunity ethicsEnvironmental ethicsArticle