Question 2: Climate events and GDP (Answer in 200-400 wrds in total)

A new report has found that Europe is experiencing its worse drought in at least 500 years, with two-thirds of the continent in a state of alert or warning (10 marks).

1. Define the GDP and how the impacts of environmental events are measured in the GDP in these European countries (5 marks).

2. Give an example by which a climate event can increase the GDP despite being detrimental to well-being (5 marks).