Financial Feasibility of the Biogas Plant Installation in Terai Regions of Nepal
International Journal of Economics, Finance and Management Sciences
Volume 4, Issue 3, June 2016, Pages: 153-156
Received: Nov. 15, 2014; Accepted: May 11, 2016; Published: May 28, 2016
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Authors
Shailendra Dhakal, Department of Agricultural Economics, Institute of Agriculture and Animal Science (IAAS), Tribhuvan University, Rampur Chitwan, Nepal
Thakur Bhattarai, The Institute of Future Farming Systems, School of Medical and Applied Sciences, Central Queensland University, North Rockhampton, Australia
Shiva Chandra Dhakal, Department of Agricultural Economics and Agribusiness Management, Agriculture and Forestry University, Rampur Chitwan, Nepal
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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.
Keywords
Climate Change, Feasibility, Biogas, Benefit-Cost Ratio, Vulnerable, Mitigation, Adaptation, Nepal
To cite this article
Shailendra Dhakal, Thakur Bhattarai, Shiva Chandra Dhakal, Financial Feasibility of the Biogas Plant Installation in Terai Regions of Nepal, International Journal of Economics, Finance and Management Sciences. Vol. 4, No. 3, 2016, pp. 153-156. doi: 10.11648/j.ijefm.20160403.18
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