Abstract
This paper, noting positive marks due to regular supply of electricity and increased consumption of its, examines the role of electricity consumption in export performance of Nepal employing the Autoregressive distributed lag (ARDL) approach of cointegration for the period of 1975-2018. The results show that electricity does have a strong long-run positive relationship with the export performance of Nepal. Therefore, it can be suggested, based on the results, that increasing electricity consumption might increase the exports values. Also, there is a need for building infrastructure to support production activities, not just the means of transportation to reach our villages. Only those infrastructures focused on production activities will contribute to increasing the exports attracting more foreign direct investment in the country. Keywords: Energy, Electricity, Export performance, Nepal JEL Classifications: O13, L94, F13, O53 DOI: https://doi.org/10.32479/ijeep.10524
Highlights
Nepal went through a period of the electricity crisis exposed by the series of routine load-shedding that has a compelling adverse impact on production activities, which may result in a juxtapose poor export of goods and services
The role of electricity consumption as the best source of energy in the country in export performance is an interesting area of research in the context of Nepal, which has a huge potentiality of hydro base electricity
We document a brief scenario of electricity consumption and its relationship with export values in the context of Nepal
Summary
Nepal went through a period of the electricity crisis exposed by the series of routine load-shedding that has a compelling adverse impact on production activities, which may result in a juxtapose poor export of goods and services. The energy consumption doubles within 1 year, i.e., in 2002 but with the very low base (International Energy Agency 2020) partly by own production and partly by importing the electricity from India. It seems that increasing the electricity supply in the country got priority since 2000 when the Electricity Development Center was converted as a government’s department and renamed as Department of Electricity. Electricity supply got a national priority acknowledging the role of energy in the economic development of the country (Government of Nepal 2001). The role of electricity consumption as the best source of energy in the country in export performance is an interesting area of research in the context of Nepal, which has a huge potentiality of hydro base electricity
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