How Much Has Nepal Lost in the Last Decade Due to Load Shedding? : An Economic Assessment Using a CGE Model
Nepal suffered with severe shortage of electricity supply or load shedding in the last decade. Electricity load shedding is considered one of the major barriers to the country's economic development. This study uses a computable general equili...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/934061528378849106/How-much-has-Nepal-lost-in-the-last-decade-due-to-load-shedding-an-economic-assessment-using-a-CGE-model http://hdl.handle.net/10986/29897 |
| Summary: | Nepal suffered with severe shortage of
electricity supply or load shedding in the last decade.
Electricity load shedding is considered one of the major
barriers to the country's economic development. This
study uses a computable general equilibrium model to
estimate the economic costs of electricity load shedding the
country faced during 2008-16. The study shows that if there
had been no load shedding, annual gross domestic product, on
average, would have been almost 7 percent higher than it was
during 2008-16. The worst effects of load shedding were on
the investment environment. If there had been no load
shedding, investment would have been 48 percent higher than
it was. Although electricity load shedding has been reduced
recently in the residential sector through better
electricity load management and increased electricity
production and imports, the industrial sector, one of the
main sources of economic growth in the country, still faces
load shedding. Unless the electricity load shedding is
eliminated, Nepal will continue to suffer a heavy economic loss. |
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