Abstract
In this paper, economic valuation (financial and economic analysis) of Family sized Biogas Plant (FBGP) in case of Nepal is carried out, aiming at contributing to an appropriate policy measures for sustainable development of FBGP. As a result, it is showed that (1) FBGP is a good facility, of which cost performance is high, (2) slurry utilization as a fertilizer is indispensable in order to maximize benefit of investment, (3) external benefit is less than 10 % of total benefit and also less than actual government subsidy, (4) value of forest as sink of carbon dioxide occupies more than 90 % of external benefit. Based on the result and analysis of a present subsidy scheme, it is recommended that (1) a subsidy should be set according to external benefit, (2) a large size FBGP (community sized plant) should be promoted, (3) a mechanism which solve unfairness among areas and income classes should be incorporated in a subsidy scheme, (4) while gradually reducing a subsidy for an initial cost of construction, a financin system which enable future investors (farmers) to gain a loan with a discounted interest rate should be established.
