IDEAS home Printed from https://ideas.repec.org/a/ibn/ijefaa/v18y2026i2p19.html

Remittances Inflow and Electricity Consumption: Empirical Evidence from Nepal

Author

Listed:
  • Mani Ratna Lamsal
  • Madhav Prasad Dahal
  • Jeevanath Devkota

Abstract

Inward remittances from cross-border labor migration have been a major source of income for many developing countries and Nepal is no exception. With a large part of its labor force working overseas, Nepal consistently ranks among the world’s top remittance recipients relative to GDP. Remittances support investments in housing, education and health, and increase access to modern energy. Despite the critical role of electricity, the relationship between remittance inflows and electricity consumption has been scarcely examined in Nepalese context. This study uses annual time series data from 1993 to 2023 and the Autoregressive Distributed Lag (ARDL) bounds testing approach to investigate the short-run and long-run dynamics. Electricity consumption (ELCN) is regressed on remittance inflow (REMI) as the key explanatory variable, along with gross enrollment in higher education (EDU), gross domestic product (GDP), and the consumer price index (CPI) as controls. The results show a positive and statistically significant impact of remittances on electricity consumption, consistent with the perspective that remittance-driven income increases electricity demand.

Suggested Citation

  • Mani Ratna Lamsal & Madhav Prasad Dahal & Jeevanath Devkota, 2026. "Remittances Inflow and Electricity Consumption: Empirical Evidence from Nepal," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 18(2), pages 1-19, February.
    • Handle: RePEc:ibn:ijefaa:v:18:y:2026:i:2:p:19
    as

    Download full text from publisher

    File URL: https://ccsenet.org/journal/index.php/ijef/article/download/0/0/52760/57507
    Download Restriction: no
    File URL: https://ccsenet.org/journal/index.php/ijef/article/view/0/52760
    Download Restriction: no
    ---><---

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibn:ijefaa:v:18:y:2026:i:2:p:19. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.