Energy input–output model for sustainable socio-economic development in Nepal

Energy is a crucial ingredient in the socio-economic development of any country. This paper examines whether a developing country like Nepal can achieve the development objectives specified under its Tenth Five-year Plan (2002–07) in terms of energy requirements. In this regard, an IO (input–output) analysis was carried out to study the energy demand by the different economic sectors as outlined in the Tenth Five-year Plan. This analysis indicates that Nepal’s total energy demand cannot be met by the existing energy policy and the unsustainable supply sources. Alternative energy sources can play a vital role in meeting the deficit energy demand as these sources need less time and cost for installation and energy extraction, and are sustainable. One of the possibilities could be community-based initiatives like smallscale or micro hydropower schemes at the local level, which would mobilize social capital and conserve ecological resources, as well as enhance their sustainability in the long term.