Kathmandu Policy Institute

Kathmandu Policy Institute A forum to discuss the policy and practice, specially pertained to the Kathmandu City. Created with an overview to accumulate the idea from different groups of people (be it an economist, an engineer, a politician, a social activist or any other diverse field) about the policy and practice prevalent in Kathmandu City.

Operating as usual

A few weeks earlier, the Transit Elevated Bus (TEB) being successfully tested on the road of China surfaced the news and...
Why China’s lane-straddling super-bus won’t get off the ground

A few weeks earlier, the Transit Elevated Bus (TEB) being successfully tested on the road of China surfaced the news and social medias. But is the so-called revolutionary mode of transportation a near reality? A story from The Economist: http://www.economist.com/blogs/gulliver/2016/08/tall-tales?fsrc=scn/fb/te/bl/ed/talltaleswhychinaslanestraddlingsuperbuswontgetofftheground

The Transit Elevated Bus started with a fanfare. But now questions are being asked


Urbanization is ubiquitous. And urbanization may present a solution to some of the alarming problems invited by the human civilization. This includes solutions to congestions; pollutions; scarcity of food, water and energy; and the creation of a sustainable and liveable community. Cities around the world today are getting smarter in providing the mobility, using the energy, acknowledging and implementing the technology, and reducing their carbon footprint.
Recently on the July of 2016, the US Department of Transportation awarded the "Smart City Competition" to the city of Columbus, Ohio. With $50 million federal support and additional grants raised, the city is all set to develop itself as a blueprint for the future of the cities. The overview of Columbus's smart city vision can be accessed inhttp://www.eenews.net/assets/2016/03/31/document_pm_02.pdf


Two journal articles related to Transportation policy. One of the author is also the founder member of this page. Anyone interested in going through the full version of the article can send us the message requesting for the text. The discussions/suggestion for implementation of formulation of similar policy or activity in Nepal is open. Send us your feedback and suggestions.



We came across this article by Mike Woof on the January/February issue of World Highways. It mentions that Central Burea...
World Highways - Nepal plans road infrastructure expansion

We came across this article by Mike Woof on the January/February issue of World Highways. It mentions that Central Bureau of Statistics (CBS) have gathered data to facilitate fiscal planning, public transport and also help in education and research. CBS can be a source of data for any research you may want to undertake. Have a look at the article as well as the CBS website.


Major road expansion is planned for Nepal, but will face huge challenges due to the country's geography - Mike Woof reports, with local information from World Highways' Nepal correspondent, Ram Krishna Wagle The tiny, landlocked nation of Nepal lies sandwiched between two of the world's largest coun...


Economics is all about incentives. So here is an incentive. Get involved an earn cash prizes. You can participate alone or in a group. Come up with the policy related issues in your locality. Share the ideas in the page. Accumulate the ideas from the discussions and prepare a writing paper. The paper can be thinking paper with or without involvement of much data and analysis. However collection of data from the authorized source and conducting some analysis would be an added bonus. Give proper references and citation to the ideas (be it the information from the Wikipedia). Suggest your additional reforms. The best 5 papers earn a whopping prize of Rs. 20000 each. Fair enough??
1. Identification of a policy related problems (be it existing or new ones). Like introduction of Sajha bus in city, or increase/ decrease in fuel price, suitability of opening a new market place, Increasing or decreasing the public transit price, monopoly vs oligopoly market of transportation/ or other services etc. Feel free to add the new topic. Again Sky is your limit.
2. Share it in the group “Kathmandu Policy Institute”
3. Review the discussions that follow.
4. Make note of the good and bad aspects of the policy.
5. Formulate some econometric or mathematical model if applicable.
6. Provide an analytical or thinking solution to the problem.
7. Well document it and submit it.
No charge for participation people. It’s all free!!!
We want to increase the participation people in policy making. If there are more good ideas the number of prize can be increased. But the total fund is constrained to Rs. 1,00,000. (Remember, Constraints are always prevalent in every field. An industry cannot have unlimited resources).
The review of your paper will be done the industrial and academicals professional. A panel of judges will be formed with their qualifications indicated.
Stay tuned, We will be coming up with the dates and further information.


Reducing the petroleum price may not be the solution to the problem of price hike. First the reduction of price would induce backflow of petroleum product out of country in the border area. The subsidy that was meant to be distributed to all the residents of the country goes into the hand of selected business men. Second the subsidy amount that government gives is generated from tax money. The tax money is redistributed in terms of subsidy. In the redistribution process we should expect some loss due to inefficiency of the system. Thirdly, subsidy lowers the price of petroleum products. When prices goes down demand goes up. People tend to use the product extravagantly. This will create the deficit in the market. Since the supply of petroleum is constrained, the deficit will again cause the price to go up. Hence we cannot gain from having subsidy in the petroleum products. A socially optimal price would be to have a market determined equilibrium price. The consumer surplus will be maximum at this price.

We are in a stressful condition due to the fuel price hike. Lets look at the short and long term effect of fuel price hi...

We are in a stressful condition due to the fuel price hike. Lets look at the short and long term effect of fuel price hike.

In short run, the price hike will have a small effect on quantity of fuel demanded (price and demand are inversely related) i.e the price elasticity of fuel is less. People tend to drive less in the beginning but won't give up their vehicles overnight and buy more fuel efficient vehicles. However in the long run, people may want to switch to more fuel efficient vehicles which will lower the fuel demand i.e in the long run the elasticity will be more. This can shown with figure (a) for fuel market. The exact opposite is true for automobile market. The figure (b) may represent the automobile market.

The following figure shows the historic GDP per capita of Nepal from the year 1961. The blue line shows the nominal valu...

The following figure shows the historic GDP per capita of Nepal from the year 1961. The blue line shows the nominal value of GDP per capita in USD. The orange line shows the real value of GDP per capita in constant dollar of 2005. Real value of money takes into account the purchasing power of money, which is calculated by the Consumer Price Indicator (CPI). The two lines intersect each other at the year 2005 because the real and nominal value of the money is equal in the base year (our base year here is 2005 USD). Real values are frequently used in the study when the panel data are involved. After discounting for the purchasing power the values are standardized and are directly comparable. For example, we can say that the GDP per capita of Nepal has almost increased by 100% from 1961 to 2012.


Tribhuwan International Airport serves as the only International Airport of Nepal. It may be good to have other international airports present in the country. There are news that a second international airport is being built at Nijgadh, Bara. Also a fast track is also being constructed from Kathmandu to Hetauda which will also shorten the travel time from Kathmandu to the terai of the central region. If not mistaken there is also a railroad propasal that will connect capital to that region. In such the demand for travel is divided among three entities: air, road and rail. Can we come up with choice model between these three modes?
The factors affecting peoples choice would be generalized cost, socio-economic factors and other such factors. Believe us such model would be the first requirement if you are trying to be an entrepreneur (say example you want to start a new airline service between two city and determine the service frequency, price of ticket, price elasticity of demand and so on).
We welcome your responses and enjoy the participation from a wide perspective.


Something quite relevant to our case. Take a look at the following document. Analyses the impact of parking price policy.

Lets have a look at the population pyramid of Nepal for 2010. The Y-axis represents the age group and the X-axis represe...

Lets have a look at the population pyramid of Nepal for 2010. The Y-axis represents the age group and the X-axis represents the percentage of population. No wonder the percentage of population greater than 20 years decreases sharply. You can look at the future forecast upto the year 2100 in the following website. If you are a entrepreneur trying to launch some product to some age specific age population this may serve as a tool to make a decision.


Kathmandu Policy Institute's cover photo

Kathmandu Policy Institute's cover photo


Lets begin. Kathmandu Policy Institute would analyze the policy debate on the grounds of economics, social welfare, engineering grounds and other aspects that comes relevant. Policies are the reforms that would affect the large number of inhabitants positively or negatively. Hence any sort of discussion is helpful prior to its implementation. This is specially true in the national level or in the senate level. Although the voices raised here may not reach the concerned level but with the help of discussion we may be able to create an awareness among ourselves. Some of these discussion may come handy in our research, writings or evaluations. We are focused to analyse an issue on the basis of economical principles. Mathematically speaking, we try to optimize the value of social welfare through our discussion.


Chicago, IL


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