Economic and social benefits from biogas technology: a study of Una district (H.P.)
By: Pathania, M.S.
Contributor(s): Vashist, G.D.
Material type:
ArticlePublisher: 2001Description: p.475-88.Subject(s): Biogas - India - Himachal Pradesh | Biogas
In:
Indian Journal of EconomicsSummary: Himachal Pradesh has emerged as a pioneer hill state in the development of biogas technology as more than 38,656 biogas plants have so far been installed in the state. Attractive incentives have also been provided in the form of lofty subsidy for the installation of biogas plants. It is imperative that the programme which is launched in a big way should be evaluated. So, an economic analysis of the biogas technology is also essential to acquaint the authorities about the progress and economic benefits that accrue to the beneficiaries through adoption of biogas technology. Una district of Himachal Pradesh boarding plains of Punjab was purposively selected for the study. Sample design used for selection of biogas plant owners was multistage stratified random sampling. Ten per cent sample was drawn randomly from each size of functional biogas plants and primary data were collected from these biogas plant owners. In order to work out the incremental benefit, only additional cost incurred due to biogas plants were accounted for the use of dung through biogas plants determines the incremental benefits from this technology. To examine the economic viability of biogas plants in Himachal Pradesh, budgeting techniques such as Net Present Value (NPV), Benefit Cost ratio (B/C ratio), Pay Back Period (PBP) and Internal Rate of Return (IRR) were worked out for different sized biogas plants separately. The findings of the study have clearly brought out that both the model used in the analysis gave almost same additional returns. The per capita fixed cost decreased with the increase in the size of biogas plants. Total variable cost increased with the increase in the size of biogas plants. The incremental benefits from biogas plants revealed that biogas technology is a viable option for many end use in the rural areas. Further, budgeting techniques were sensitive to the efficiency of fuelwood cooking stove, biogas efficiency, price of firewood and discount rate. These parameters increased with the increase in size of biogas plants, efficiency of biogas stove, and decreased with increase in the discount rates and efficiency ofcooking stove, while reverse was the case with PBP. The marginal and small farmers and landless labourers now could install the smallest size biogas plants, namely, 2 cum both for economic and social benefits. Further, any reduction in the subsidy by the government should primary be directed towards the biogas plants of higher capacities. So that small and marginal farmers will not be affected by subsidy reduction.
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Articles
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Indian Institute of Public Administration | Volume no: 81, Issue no: 323 | Available | AR50494 |
Himachal Pradesh has emerged as a pioneer hill state in the development of biogas technology as more than 38,656 biogas plants have so far been installed in the state. Attractive incentives have also been provided in the form of lofty subsidy for the installation of biogas plants. It is imperative that the programme which is launched in a big way should be evaluated. So, an economic analysis of the biogas technology is also essential to acquaint the authorities about the progress and economic benefits that accrue to the beneficiaries through adoption of biogas technology. Una district of Himachal Pradesh boarding plains of Punjab was purposively selected for the study. Sample design used for selection of biogas plant owners was multistage stratified random sampling. Ten per cent sample was drawn randomly from each size of functional biogas plants and primary data were collected from these biogas plant owners. In order to work out the incremental benefit, only additional cost incurred due to biogas plants were accounted for the use of dung through biogas plants determines the incremental benefits from this technology. To examine the economic viability of biogas plants in Himachal Pradesh, budgeting techniques such as Net Present Value (NPV), Benefit Cost ratio (B/C ratio), Pay Back Period (PBP) and Internal Rate of Return (IRR) were worked out for different sized biogas plants separately. The findings of the study have clearly brought out that both the model used in the analysis gave almost same additional returns. The per capita fixed cost decreased with the increase in the size of biogas plants. Total variable cost increased with the increase in the size of biogas plants. The incremental benefits from biogas plants revealed that biogas technology is a viable option for many end use in the rural areas. Further, budgeting techniques were sensitive to the efficiency of fuelwood cooking stove, biogas efficiency, price of firewood and discount rate. These parameters increased with the increase in size of biogas plants, efficiency of biogas stove, and decreased with increase in the discount rates and efficiency ofcooking stove, while reverse was the case with PBP. The marginal and small farmers and landless labourers now could install the smallest size biogas plants, namely, 2 cum both for economic and social benefits. Further, any reduction in the subsidy by the government should primary be directed towards the biogas plants of higher capacities. So that small and marginal farmers will not be affected by subsidy reduction.
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