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Does Institutional Failure Undermine the Physical Design Performance of Solar Water Pumping Systems in Rural Nepal?

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Title: Does Institutional Failure Undermine the Physical Design Performance of Solar Water Pumping Systems in Rural Nepal?
Authors: Dhital, Ram / Ito, Yutaka / Kaneko, Shinji / Komatsu, Satoru / Mihara, Ryota / Yoshida, Yuichiro
Issue Date: 9-Aug-2016
Publisher: MDPI AG
Citation: Sustainability, 8(8), 770; 2016
Abstract: The mountainous hinterland in rural Nepal lacks a fundamental social infrastructure. For example, the lack of electricity causes water provision difficulties, especially in mountainous areas where villagers, especially women and children, often spend a considerable amount of time just conveying water to their homes. To overcome this challenge, a subsidy policy for the installation of a solar-photovoltaic water pumping system (SWPS) has recently been implemented nationwide in Nepal. The Nepali government's tight financial constraints require that the installation process is both economically and technologically sound. However, the institutional design of the current subsidization policy is price-distortionary and potentially induces the installation of inefficient systems. By collecting original field data from 38 wards in all seven regions of Nepal, this paper measures the SWPS's technical efficiencies and then identifies relevant economic policies that will enhance the performance of the SWPS. Our results show, inter alia, that a higher dependency on financial support from the government is associated with excessive investment in the SWPS.
Keywords: Data envelopment analysis / Nepal / Rural development / Solar / Subsidy policy / Water
URI: http://hdl.handle.net/10069/37248
DOI: 10.3390/su8080770
Rights: © 2016 by the authors; licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC-BY) license (http://creativecommons.org/licenses/by/4.0/).
Type: Journal Article
Text Version: publisher
Appears in Collections:Articles in academic journal

Citable URI : http://hdl.handle.net/10069/37248

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