Space matters: reducing energy disparity in Nepal through spatially equitable renewable energy subsidies

Abstract: Affordability is a major barrier to the adoption of clean energy technologies in low-income countries, which partly why many governments provide subsidies offset some upfront (installation) costs. However, simple administrative rules might not fully account for economic geography, resulting lower remote areas. Using regression analysis on rich dataset adoption, cost and subsidy about 4000 Nepalese Village Development Committees over 22 years, we show that administratively determined lumpsum disproportionately hurt communities. Simulations adjusting spatially reflect geographic living, can increase technology adoption. Thus, spatial targeting key accelerating access settings such as Hindu Kush Himalaya.