Hydroelectricity In Nepal Essay

Impact of hydroelectricity in Nepal’s Economy

Hydroelectricity is electricity generated from the flow of water. This is usually done with dams to block a river to create a reservoir or to collect water that is pumped. When the water "let go", the big push behind the dam forces the water down pipes leading to a turbine. Nepal is a landlocked country which is situated between two giant country India and China. Nepal is highly depending upon the India. Nowadays hydroelectricity is playing a vital role.

Nepal Electricity Authority (NEA), founded in August 16, 1985 is the parent generator and distributor of electric power under the supervision of the government of Nepal. The first hydroelectricity of Nepal is Pharphing hydroelectricity which was

Further the government can benefit by implying taxes on the industries and use it for further infrastructure development. This lead to increase in employment opportunity and increase in capital market too which help to boom the economy of country.

The impacts of Hydroelectricity in Nepalese economy in detail are:

1) Employment : The establishment of Hydroelectricity projects provides long term employment opportunities to many people. Also, since most of the Hydroelectricity production projects are located in rural areas, the people of rural areas who have less skills and knowledge get employment opportunities in their respective locality. Hence, it has solved the problems of extreme poverty, youth going overseas for work and has helped in improving the living standard of people.

2) Eliminates negative externalities : Hydroelectricity is a non- polluting, clean and environment friendly source of energy. Thus, generation of hydroelectricity doesn’t pollute the environment. It ignores negative externalities such as air pollution, noise pollution, etc. which gives them an upper hand over paying the cost of such

In the above we can see that the demand is more than production as well as supply which lead to shortage and the result is load shedding is occurs. Compare to supply and demand the supply is too less compare to demand.

A shortage occurs whenever quantity demanded is greater than quantity supplied at the market price. More people are willing and able to buy the electricity at the current market price than what is currently available. When a shortage exists, the market is not in equilibrium.

The term 'shortage' can be easily confused with scarcity, which is one of the underlying basic problems of economics. The easiest way to distinguish between the two is that scarcity is a naturally occurring limitation on the resource that cannot be replenished. A shortage is a market condition of a particular good at a particular price. Since demand is more than supply there is scarcity of electricity.

We can understand shortage more by looking toward the diagram drawn