Mapping the industries’ willingness to pay for unrestricted electricity supply

Niranjan Devkota (), Anish B. K, Nirash Paija, Udaya Raj Paudel and Udbodh Bhandari
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Niranjan Devkota: Pokhara University
Anish B. K: Business Development Officer, E-Sewa
Udaya Raj Paudel: Pokhara University
Udbodh Bhandari: Pokhara University

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2022, vol. 24, issue 1, No 27, 666-682

Abstract: Abstract The supply of electric power plays a crucial role in industrial production, and the current scarcity of electricity prevailing in the industries necessitates willingness of industries to pay higher price for energy supply. This paper explores willingness of the industries to pay for adequate electricity supply and proper management of electricity in 279 industries located in the industrial estates of Kathmandu valley. The required information was drawn from 279 industries through a structured questionnaire based on the interviews. Tobit model and survey results show that information of outage and frequency of outage resulted in positive and statistically significant effects. For the perpetual electricity supply, 94% of the industries are ready to pay higher rate of payment for the use of electricity. The findings infer that Nepal Electricity Authority should improve transparency, connection cost mechanism, regulate the electrical profession and strengthen power factors and operational efficiency to resolve the energy shortage faced by the manufacturing industries of Nepal. Thus, the study concludes that along with the skyrocketing population size, people also require increasing number of commodities and industries are forced for more production to meet these demands. So, adequate supply of electricity in the industrial area plays a complementary role in capital growth and production.

Keywords: Adequate energy supply; Electricity supply; Industrial willingness to pay; Industrial estates; Kathmandu valley (search for similar items in EconPapers)
JEL-codes: D24 L6 L94 Q54 (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/s10668-021-01462-5

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