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Electricity as a Viable Alternative to Petroleum Products An Analysis of its Substitutability in Terms of Private Consumption

This paper analyses the cross elasticity between the prices of petroleum products and electrical appliances and the possibility of substituting the use of products that use petroleum in Nepal with electrical products. The study includes a correlation analysis and regression estimates to conclude that oil price has a positive effect on imports of electric items. The paper also recommends measures to increase access and consumption of electricity, and measures to increase the overall efficiency of the electricity sector in Nepal.

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