Economy-wide Cost of Electricity Load Shedding in Nepal

Govinda Timilsina, Jevgenijs Steinbuks and Prakash Sapkota

No 333038, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: This study estimates the economic costs of electricity load shedding in Nepal over the period 2008–16. We show that in the absence of load shedding, annual gross domestic product, on average, would have been almost 7 percent higher than it was during the period of power outages. The load shedding particularly strongly affected investment that would have been 48 percent higher with the reliable power supply. Although reliability of power supply in the residential sector has recently improved because of better electricity load management, and an increase in electricity production and imports, the industrial sector still faces significant load shedding. Unless the electricity load shedding is eliminated, Nepal will continue to suffer a heavy economic loss.

Keywords: Resource/Energy; Economics; and; Policy (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:333038

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