Min Bahadur Shahi

Sustainable energy consumption, economic growth and carbon emission (CO ₂ ) is an ongoing global agenda for optimizing energy use including Nepal. This paper examines the effect of renewable energy consumption, economic growth, urban population growth, and trade openness on CO ₂ in Nepal, revisiting environmental Kuznets Curve (EKC). The time series analysis was done using ARDL framework to examine whether Nepal follows the EKC pattern, which indicates that environmental degradation first increases with economic growth and later declines after reaching a certain level. The estimated long-run coefficients show that a percent increase in GDP growth rate is associated with 0.012 percent fall in CO2 emission. However, a 1 percent increase in squared GDP growth is associated with 0.001 unit rise in CO2 emission in Nepal. Moreover, a 1 percent rise in renewable energy use and urban population growth is associated with 0.21 percent and 0.043 percent fall in CO2 emission respectively. Finally, the result shows that a 1 percent raise in trade openness is associated with 0.12 percent raise in CO2 emission. Moreover, the error correction term (ECT) is negative and statistically significant at the 1 percent level, with a coefficient of -0.5612, which confirms the existence of a stable long-run equilibrium relationship among the variables. Therefore, the coefficient indicates that approximately 56.1 percent of the previous period’s deviation from the long-run equilibrium is corrected in the current period. Hence, the significance and appropriate sign of the ECT validate the long-run causality included in the model as dependent and explanatory variables, supporting co-integration among them. This paper contributes to the ongoing debate regarding optimization energy consumption by providing Nepal-specific evidence on the complex interplay between energy consumption, economic growth and carbon emission. JEL Classification: Q56, Q43, C32

Digital Transformation (DT) is common to facilitate overall efficiency to make optimization of scarce resources and ensure overall efficiency gain business performance. This paper aims to assess the perceived impact of DT on operational efficiency gain of SMEs in Nepal. The study population comprised SMEs that had been operating for at least the past 12 months in Kailali and Kanchanpur districts of Nepal from which samples were selected during first quarter of 2025 through purposive sampling within predefined strata as the cross-sectional survey of 384 SMEs to assess SMEs’ operational efficiency. The findings indicate that digitization level (β = 0.706, p < 0.001), digital payment density (β = 0.287, p < 0.001), efficiency in cost reduction ((β = 0.065, p < 0.001), and size of firm (β = 0.169, p < 0.001) indicating significant contribution on increase in operational efficiency. The estimated model explains 53 percent of the variance in operational efficiency, suggesting a good fit acceptable to the domain of behavioral economics. The findings suggest that digitization is inevitable for enhancing resource optimization and gaining competitive advantage. Based on the findings, policy implication may be suggested as digital capacity building of small enterprises by means of training, affordable digital infrastructure, and technology adoption incentives that can ensure efficiency in operations.

Financial risk protection and efficient use of healthcare resources remain critical challenges for Nepal as a low-income country. This study examines beneficiaries’ perceptions of financial risk protection and service coverage under the National Health Insurance Scheme (NHIS) from a health economics perspective, with a focus on optimizing limited resources. The study aims to capture beneficiaries’ perception on satisfaction, challenges, and gaps in scheme implementation within the study area. Primary data were collected during the first quarter of 2025 from 62 NHIS-enrolled households across nine wards of Tikapur Municipality, Kailali district, using a structured questionnaire. Proportionate stratified sampling based on ward-level enrollment was applied, with purposive sampling within each stratum. The findings indicate that beneficiaries generally rate the NHIS positively in terms of financial security. However, notable weaknesses persist, particularly regarding emergency care support and the availability of health services. A major concern expressed by respondents is the exclusion of several essential medicines from the benefit package, especially those needed by vulnerable populations. In addition, the current annual coverage ceiling of NPR 100 thousands is widely perceived as insufficient to meet actual healthcare costs. These gaps highlight the need for operational and policy reforms. Expanding benefit packages and increasing coverage limits could enhance enrollee satisfaction, reduce out-of-pocket payments for healthcare, promote equity, and support Nepal’s progress toward universal health coverage.

Nepal launched National Health Insurance Scheme (NHIS) in 2016 aiming to reduce out-of-pocket (OOP) payments for healthcare and to ensure financial protection of households in healthcare and increase healthcare access. The systematic impact analysis of the NHIS in Nepal is sparse. The objective of the study was to analyze the contribution of NHIS to reduce OOP payments for healthcare and increase healthcare access and ensure financial protection. The primary data for this study were collected from nine wards of Tikapur Municipality of Kailali district using a structured questionnaire during first quarter of 2025. The sample of the study was 120, consisting of 62 within the experimental group and 58 in the control group from nine wards using proportionate stratified sampling based on the number of enrollee in each ward, with purposive sampling applied within strata. The Eviews software was applied for statistical analysis of the data. The estimated result of multiple regression analysis shows that the households enrolled in insurance scheme are able to reduce OOP payments for healthcare by 6.7 percent (p <0.01). Moreover, the analysis revealed that higher healthcare utilization and the presence of chronic disease in household significantly increase household OOP payments. Conversely, the higher education levels of household heads are associated with the lower OOP payments for healthcare, indicating educated households head may be opting for cost effective healthcare thereby emphasizing preventive care. The findings highlight the increased contribution of NHIS of Nepal for the financial protection of households in healthcare expenditure and also provided valuable insight for policy implication for reforming the scheme expanding benefit package and improving administrative procedures to increase effectiveness of NHIS of Nepal.

This study critically examines deliberative practices within the executive bodies (karyapalika) of local governments in Nepal’s evolving federal governance system, drawing empirical insights from four municipalities in the Kailali district, Nepal. Following the promulgation of the 2015 Constitution and the enactment of the Local Government Operation Act (LGOA) in 2017, Nepal laid a robust legal foundation for participatory governance at the grassroots level. This research explores how deliberative decision-making processes are implemented in practice and evaluates the extent to which local governments fulfill their constitutional commitments to inclusiveness and accountability. Adopting a mixed-methods approach, the study integrates questionnaire surveys, qualitative interviews and observations, collecting data from 511 respondents, including elected representatives, administrative staff, and service recipients. The findings indicate that, although legal provisions promote deliberative governance, practical implementation is often constrained by political dominance, procedural rigidity, and limited stakeholder participation. Quantitative findings indicate that approximately 32 percent of key stakeholders (elected representatives and staff) express satisfaction with the deliberative culture of the local executive, while the remainders are neutral or dissatisfied. In contrast, qualitative insights highlight challenges, including the dominance of the ruling party and the influence of individual authority (mayor/chairperson), which impact the decision-making process in local governance. The results indicate a substantial connection between deliberative mechanisms, such as the holding of regular executive meetings, and the transparency in decision-making, which significantly aids in managing citizen grievances. Furthermore, participatory monitoring practices are often merely symbolic, characterized by tokenism, and are not well comprehended by the citizens. The research indicates that deliberative democracy within Nepal’s local governance is still in a nascent stage. To unlock its full potential, it is essential to strengthen institutional capacity, promote civic awareness, ensure inclusive participation, and reinforce regulative mechanisms. Addressing these deficiencies is crucial for embedding substantive deliberative practices into Nepal's decentralized governance framework.

Feedback mechanisms are critical elements of an institution's educational governance. This paper aims to explore the role of feedback mechanisms in the context of educational governance within the higher education system on campus. Utilizing a descriptive research design that incorporates a case study approach, the researchers identified four faculty members, and three non-teaching staff members as key informants, through purposive sampling. Additionally, 50 students from various programs across the three faculties and 42 corresponding guardians were selected as respondents using a random sampling method. Questionnaires, interview schedules, and non-participant observation forms were the basic tools for data collection. The researchers employed program theory as a theoretical framework. The research underscores the essential function of constructive feedback in improving educational results and emphasizes the necessity of incorporating stakeholder viewpoints into governance frameworks. A lack of a strong and effective feedback system is apparent in the educational governance at campus, particularly in relation to curriculum design, teaching methods, assessment systems, and services. This paper posits that feedback mechanisms are fundamental to ensuring quality education within the institution. It is imperative for campus administration to actively oversee and deliver feedback to the relevant educators, rather than solely to the teaching staff and students.

The articulation of downward (social) accountability to the local government (LG) has been established by the new constitution of Nepal (2015) and further elaborated in the Local Government Operational Act (2017). LGs in Nepal have gained more autonomy, role, and responsibility for providing public services to local citizens following the state restructuring into federal Nepal. What does local governance practice look like today in terms of downward accountability? This paper examines the existing patterns of downward accountability, particularly in the same cases of local government in the Kailali district in the Sudurpaschim Province. Two separate field-based studies were conducted in different periods. Initially, the study assessed the compliance of social accountability tools in three local units (2019). The second attempt was a study focused on the practices of the monitoring mechanisms of four LG units (2021). The analysisused the observation check-list, key informant interview, and questionnaire schedule for data collection. The respondents to the study were the elected representatives, staff of LGs, and service-receiving citizens. This observation shows doubt about the practice of downward accountability at LG and its compliance, which appears to be ambiguous. LG elected representative's perception of downward accountability and the compliance mechanism must be clarified and specific. However, both elected representatives and the citizens have taken monitoring action in support of the downward accountability of LG. Effective service delivery has slowed due to a lack of a standardized downward accountability system.

This paper seeks to evaluate the existing practices of monitoring system and explore the perception of stakeholders towards the monitoring mechanism of the local government. Additionally, it assesses the strengths and weaknesses of monitoring system of the local government provisioned by the Act (LGOA-2017) in Nepal. The paper applies a descriptive research design, as well as in-depth interviews to justify its findings. Separate questionnaire schedules were used to collect information from both service providers and recipients. Similarly, a tested observation checklist was used to assess the compliance with the current monitoring actions of the study area. The data were analyzed using descriptive statistical tools using the SPSS computing technique. The findings of the study show that local governments have not adequately followed the monitoring practices and processes. However, the elected representatives and the citizens have taken monitoring action as a positive way. It appears that monitoring mechanism has served as a tool for local governance activities and service delivery. Yet, local governments have not prioritized monitoring tools as a governance compliance strategy. It is necessary to institutionalize the monitoring mechanism for effective service delivery.

The public recreation parks are public goods and need timely upgrade to ensure increase public welfare. The aim of this study was to analyze the perception of the visitors on the key constructs of park service quality and estimate their willingness to pay (WTP) to access the existing public park service. Tikapur Public Park in Kailali District of Nepal was the selected study site. Regression analysis was used to identify significant variables associated with WTP. The estimated regression analysis output result shows that income level, age, years of schooling, household size, substitute site travel cost, gender, place of residence, park quality, average stay hours in the park significantly predicted the WTP of the respondent visitors. Therefore, the result shows that there is substantial space for improvement in the park to upgrade the park recreational service. Likewise, based on stated willingness to pay for the park entry fee, the existing fee is far below than their WTP. This evidence clearly indicates that TBP bestows substantial welfare to the whole society. The park management should pay enough attention upgrade quality of park. There should be comprehensive reform project to avail timely adequate park service so as to raise utility from the park.