1 AIT Asian Institute of Technology

Impact of subsidy on household biogas development in Nepal

AuthorAdhikari, Bikash
Call NumberAIT Thesis no.ET-15-10
Subject(s)Biogas--Nepal
Households--Nepal

NoteA thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering in Energy Technology
PublisherAsian Institute of Technology
AbstractIn this research, we evaluated empirically the impact of subsidies on household biogas development in Nepal. Special focus was made on sample selection bias method as impact of biogas subsidy not only influence on installation of biogas plants but also in the use of biogas by households. The survey was carried out for 750 households along with views of biogas companies of Nepal, and experts of energy sector. The positive correlation between subsidy intensity and biogas users as well as in use showed that subsidy played an important role on promoting biogas installations and uses. The 10% increase in subsidy will increase biogas use by 11% and installations by 45%. The 10% decrease in subsidy will decrease biogas use and installations by 9% highlighting the possibility of subsidy reforms. The key stakeholders in the absence of subsidy could be banks, MFIs, local government bodies, local NGOs, and ministries. The study also highlights the need of balance among subsidy, credit facilities, and users upfront cost for the sustainability of the sectors. The main factors influencing rejection of biogas are financial barriers, subsidy, and access to firewood, livestock, and unknown of technology benefits. Finally, highlights the several policy implications.
Year2015
TypeThesis
SchoolSchool of Environment, Resources, and Development (SERD)
DepartmentDepartment of Energy and Climate Change (Former title: Department of Energy, Environment, and Climate Change (DEECC))
Academic Program/FoSEnergy Technology (ET)
Chairperson(s)Dhakal, Shobhakar;
Examination Committee(s)Islam, Nazrul;Salam, Abdul P.;
Scholarship Donor(s)Asian Institute of Technology Fellowship;
DegreeThesis (M.Eng.) - Asian Institute of Technology, 2015


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