International Journal of Economics, Finance and Management Sciences

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Financial Feasibility of the Biogas Plant Installation in Terai Regions of Nepal

Received: 15 November 2014    Accepted: 11 May 2016    Published: 28 May 2016
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Abstract

Biogas plant has been seen as one of the most popular and environmentally friendly strategies for tackling with climate change and improving livelihood of people in developing countries. However, the financial feasibility of establishing in the rural and low income communities is the major issue. A survey research was conducted to study the feasibility of biogas plant installation in Chitwan district of Nepal. Altogether 120 households, 60 from Gitanagar and 60 from Patihani were selected using the simple random sampling technique comprising 30 adopters and 30 non adopters of biogas from each VDC. The primary information was collected from face to face semi structured interview schedule. The secondary data related to the climatic pattern, trends were obtained from different publication and journals. The study related to the economic feasibility of the biogas revealed that the biogas was an alternative household energy source in the study area which had significant impact on the reduction of mosquito breeding, flies and rodents, foul odor, and smoke. The amount of the firewood consumption had drastically decreased from about the 2 quintal to 60 kg per month. The result from the Benefit–Cost Ratio was 1.62 at 14% rate of discount. The NPV was found to be Rs. 128113.10; IRR was 54.67%, Pay Back Period of 3 years signifying that the installation of the biogas was economically viable. Hence, the biogas may have multiple functions in the mitigation, adaptation as well as environmental and economic empowerment of the vulnerable section of the population in the country.

DOI 10.11648/j.ijefm.20160403.18
Published in International Journal of Economics, Finance and Management Sciences (Volume 4, Issue 3, June 2016)
Page(s) 153-156
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Climate Change, Feasibility, Biogas, Benefit-Cost Ratio, Vulnerable, Mitigation, Adaptation, Nepal

References
[1] Bajgain, S. and I. Shakya. 2005. The Nepal Biogas Support Program: A successful model of public private partnership for rural household Bangladesh Village. Energy 22: 763-770.
[2] Bishwas, W. K. and D. J. N. Lucas. 1996. Economic Viability of Biogas Technology in a Bangladesh Village. Energy 22: 763-770.
[3] BSP Nepal (2012). Implementation Document, SNV/N. China. Renewable Energy 30: 99-108.
[4] Medany M, Niang-Diop I, Nyong T, Tabo R, Vogel C (2006). Background paper on impacts, vulnerability and adaptation to climate change in Africa. For the African Workshop on Adaptation Implementation of Decision organized by UNFCCC Convention Accra, Ghana, 21 - 23 September 2006.
[5] Orindi VA, Eriksen S (2005). “Mainstreaming adaptation to climate change in the development process in Uganda”. Available at: http://www.acts.or.ke/pubs/monographs/pubs/ecopolicy 15.pdf (Retrieved on 10th July, 2013).
[6] Regmi B, Adhikari A (2008). Country Case Study-Nepal: Local Initiatives for Biodiversity, Research and Development (LI-BIRD) in Human Development 2007/2008 Report: Fighting Climate Change: Human Solidarity in a Divided World, UNDP.
[7] Uli Werner et al. 1989. Biogas plants in animal husbandry: a practical guide; a publication of Deutsches Zentrum für Entwicklungstechnologien – GATE in Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ).
[8] UNDP (2010). Gender, climate change and community-based adaptation.
[9] WECS (2010). Alternate Energy Technology: An Overview and Assessment. Perspective Energy Plan, Supporting Document No.3. Report No. 2/1/010595/2/9 Seq. No. 468.
[10] World Bank (2003). World development report 2003: sustainable development in a dynamic world. New York, Oxford University Press. pp. 24-29.
Author Information
  • Department of Agricultural Economics, Institute of Agriculture and Animal Science (IAAS), Tribhuvan University, Rampur Chitwan, Nepal

  • The Institute of Future Farming Systems, School of Medical and Applied Sciences, Central Queensland University, North Rockhampton, Australia

  • Department of Agricultural Economics and Agribusiness Management, Agriculture and Forestry University, Rampur Chitwan, Nepal

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    Shailendra Dhakal, Thakur Bhattarai, Shiva Chandra Dhakal. (2016). Financial Feasibility of the Biogas Plant Installation in Terai Regions of Nepal. International Journal of Economics, Finance and Management Sciences, 4(3), 153-156. https://doi.org/10.11648/j.ijefm.20160403.18

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    ACS Style

    Shailendra Dhakal; Thakur Bhattarai; Shiva Chandra Dhakal. Financial Feasibility of the Biogas Plant Installation in Terai Regions of Nepal. Int. J. Econ. Finance Manag. Sci. 2016, 4(3), 153-156. doi: 10.11648/j.ijefm.20160403.18

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    AMA Style

    Shailendra Dhakal, Thakur Bhattarai, Shiva Chandra Dhakal. Financial Feasibility of the Biogas Plant Installation in Terai Regions of Nepal. Int J Econ Finance Manag Sci. 2016;4(3):153-156. doi: 10.11648/j.ijefm.20160403.18

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  • @article{10.11648/j.ijefm.20160403.18,
      author = {Shailendra Dhakal and Thakur Bhattarai and Shiva Chandra Dhakal},
      title = {Financial Feasibility of the Biogas Plant Installation in Terai Regions of Nepal},
      journal = {International Journal of Economics, Finance and Management Sciences},
      volume = {4},
      number = {3},
      pages = {153-156},
      doi = {10.11648/j.ijefm.20160403.18},
      url = {https://doi.org/10.11648/j.ijefm.20160403.18},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.ijefm.20160403.18},
      abstract = {Biogas plant has been seen as one of the most popular and environmentally friendly strategies for tackling with climate change and improving livelihood of people in developing countries. However, the financial feasibility of establishing in the rural and low income communities is the major issue. A survey research was conducted to study the feasibility of biogas plant installation in Chitwan district of Nepal. Altogether 120 households, 60 from Gitanagar and 60 from Patihani were selected using the simple random sampling technique comprising 30 adopters and 30 non adopters of biogas from each VDC. The primary information was collected from face to face semi structured interview schedule. The secondary data related to the climatic pattern, trends were obtained from different publication and journals. The study related to the economic feasibility of the biogas revealed that the biogas was an alternative household energy source in the study area which had significant impact on the reduction of mosquito breeding, flies and rodents, foul odor, and smoke. The amount of the firewood consumption had drastically decreased from about the 2 quintal to 60 kg per month. The result from the Benefit–Cost Ratio was 1.62 at 14% rate of discount. The NPV was found to be Rs. 128113.10; IRR was 54.67%, Pay Back Period of 3 years signifying that the installation of the biogas was economically viable. Hence, the biogas may have multiple functions in the mitigation, adaptation as well as environmental and economic empowerment of the vulnerable section of the population in the country.},
     year = {2016}
    }
    

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    AU  - Shailendra Dhakal
    AU  - Thakur Bhattarai
    AU  - Shiva Chandra Dhakal
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    JO  - International Journal of Economics, Finance and Management Sciences
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    PB  - Science Publishing Group
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    AB  - Biogas plant has been seen as one of the most popular and environmentally friendly strategies for tackling with climate change and improving livelihood of people in developing countries. However, the financial feasibility of establishing in the rural and low income communities is the major issue. A survey research was conducted to study the feasibility of biogas plant installation in Chitwan district of Nepal. Altogether 120 households, 60 from Gitanagar and 60 from Patihani were selected using the simple random sampling technique comprising 30 adopters and 30 non adopters of biogas from each VDC. The primary information was collected from face to face semi structured interview schedule. The secondary data related to the climatic pattern, trends were obtained from different publication and journals. The study related to the economic feasibility of the biogas revealed that the biogas was an alternative household energy source in the study area which had significant impact on the reduction of mosquito breeding, flies and rodents, foul odor, and smoke. The amount of the firewood consumption had drastically decreased from about the 2 quintal to 60 kg per month. The result from the Benefit–Cost Ratio was 1.62 at 14% rate of discount. The NPV was found to be Rs. 128113.10; IRR was 54.67%, Pay Back Period of 3 years signifying that the installation of the biogas was economically viable. Hence, the biogas may have multiple functions in the mitigation, adaptation as well as environmental and economic empowerment of the vulnerable section of the population in the country.
    VL  - 4
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