Economics of Biogas Plant Uses and Its Impact on Rural Livelihood in a Selected Area of Bangladesh

Mohammad Ataur Rahman, Nusrat Sultana Runa

Abstract: Biogas is a reliable, easily available and economically feasible source of alternative and renewable energy which can be managed by locally available sources and simple technology in the rural villages of Bangladesh. The study was undertaken to assess the socio-economic characteristics of sample households, investigate the impact of biogas plant on livelihoods, and determine the NPV, BCR, IRR and NBI of biogas plant in Bangladesh. To achieve the objectives multi-stage cluster sampling technique was used to collect data from 50 respondents who were using biogas plant in Mymensingh district of Bangladesh. Survey method was followed to collect data from the respondents. To identify the socio-economic characteristics, simple statistical techniques were employed. To examine the impact of biogas plant on livelihoods, livelihood approach was used and financial analytical techniques were used to assess NPV, BCR, IRR and NBI. Socio-economic characteristics showed that 54% of the respondents were belonged to middle-aged group (30-50 years) and 24% respondents? occupation were business. About 36% of the respondents had the education up to higher secondary and an average family size of the respondents was 3.78. On an average about 8% of the respondents had middle income (Tk.100001-150000), about 92% had high (Tk.>150000) income level. Education, health, nutrition, capacity to work, skill and knowledge increased in 66%, 78%, 70%, 64%, 58% and network and connection, mutual support, common rules, women empowerment and leadership increased in 62%, 64%, 62%, 60%, 54%, respectively after using the biogas plant. The study represents NPV, BCR, IRR and NBI were TK.20247.64, 1.50, 19.26% and Tk. 2632.19, respectively. The results indicate that the future prospect of biogas plant is positive . Finally, it may be conclude that biogas plant has a great potentiality in Bangladesh context as there are a lot of waste materials and it will reduce the energy crisis of our country. It was very suitable for rural people and had positive impact on livelihoods.

Keywords: Biogas plant, Impact, Rural livelihood, Financial viability, Bangladesh