21. CONCLUSION COUNTRY ENVIRONMENTAL DEGRADATION (% OF GDP) REMARKS CHINA 8% Air and water pollution damages were nearly $54 billion a year or 8% of the GDP in 1995. Some scholars have estimated the burden of environmental pollution at 5% of GDP. Loss due to deforestation alone is a staggering 12%. INDIA 4.5 TO 8% Environmental cost assessment by scholars varies from 4.5% to 5% of GDP due to air pollution, groundwater mining, and deteriorating quality of aquifers, land degradation and deforestation. Annual economic costs of air pollution, contaminated water, soil degradation, and deforestation were estimated to be 8% of GDP by Tata Energy Resource Institute (TERI)