Econ-ity » November 29, 2018

Daily Archives: November 29, 2018

Supply Side Restrictions: A source of rent for the sellers

The Ministry of Home Affairs has come up with the new executive order, which if comes into action will have stricter control over the production, distribution and consumption of alcohol. One of the proposed regulations of the government is to limit the number of liquor store to two in each ward of a municipality/sub- metropolitan city/ metropolitan city and one in each ward of a rural municipality. Apart from health damages, the government asserts that alcohol consumption is one of the major reasons behind rising domestic violence, rapes and sexual abuses. In that sense, government’s intention to regulate alcohol is fairly justified. But, the consequences of such action could be completely different from what is initially intended. Continue reading

Ashesh Shrestha

About Ashesh Shrestha

Ashesh Shrestha is an independent researcher. He has an Economics background and is interested in Monetary economics and Public finance.

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Unintended Consequences of Unthoughtful Orders

The executive order that prohibits selling, distributing and drinking alcohol outdoors in hotels, resorts, restaurants, and bars is done with the intention to reduce the consumption of alcohol in Nepal but instead, this will have unintended consequences. There will be a decline in the amusement, entertainment and hospitality industries as most of them profit from selling legal alcohol. Continue reading

Roopali Bista

About Roopali Bista

Roopali is working as an assistant researcher at Samriddhi Foundation.

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Restrictions going too far?

The Government of Nepal has proposed stringent laws to regulate the alcohol consumption in the country. The government officials, through this executive order, claim that the influence of advertising on underage drinking as well as incidents of violence and crime will plummet. The new bill, if enacted, will prohibit liquor advertisements in both print and electronic media. The directive also bars the manufacturers of alcoholic beverages to sponsor sporting events, concerts and other public events. Continue reading

Ankshita Chaudhary

About Ankshita Chaudhary

Ankshita is working as a Research and Communications Assistant at Samriddhi Foundation.

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Clocking Alcohol Availability?

Nepal, like many other nations, has recently planned to adapt regulations which intend to reduce the alcohol consumption of the whole country through supply side interventions. As per the proposed directive, the hotels, bar and restaurants are likely to be restricted from selling alcoholic beverages prior to 5:00 P.M and after 10:00 P.M, while the liquor stores are allowed to perform transactions related to bottled alcohol between 4:00 P.M to 9:00 P.M. Continue reading

Ayushma Maharjan

About Ayushma Maharjan

Ayushma is working as an assistant researcher at Samriddhi Foundation.

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