5.

What is left out from the analysis and what alternate macroeconomic measures are
there that could capture what is left out?

Although the proposed thermal power plant in Rampal is expected to increase

Bangladesh’s Gross Domestic Product (GDP) and economic growth, environmental
experts have assessed that it will have a considerable damage the natural biodiversity of
the Sundarbans. In an independent EIA study of the physical, social economic and
environment of the Sundarbans conducted by Dr. Abdullah Harun of Khulna University
highlights the fact that most of the coal fired power plants impacts are negative and
irreversible. According to that study climate, topography, land use pattern, air quality,
water quality, wetlands, floral and faunal diversity, capture fisheries, forestry, tourism
and agricultural land will have a permanent negative effect. These irreparable costs to
the environment are not at all considered in the standard national accounting measures.
It is clear that GDP on its own is therefore not a sufficient indicator to holistic growth
and alongside GDP there needs to be alternative macroeconomic measures that take
into account the damages to the environment such as the Green GDP. The Green GDP
subtracts both the values of the depreciation of the fixed capital, as well as the
depreciation of natural capital from the GDP. In this case the depreciation of the fixed
capital would of the Thermal power plant itself while the depreciation of natural capital
are damages to the air, water and forest arising from the toxic emissions from burning
coal to generate the electricity. If we can take the Green GDP as a macroeconomic
measure we will find that in reality Green GDP will be negative, meaning that the actual
value of the increase in the traditional GDP from the plant as promised by the
government is an exaggeration.