Its a intensive presentation lecture on the particular chapter

1. Preference Relation
Consumer’s preference It represented by binary relation, ≿, defined
on the consumption set
Axiomatic properties: Consumer preferences can be modeled
axiomatically using some meaningful and distinct assumptions.
Consumer theory builds logically from these assumptions known as
axioms.
Preference relations must satisfy the following axioms:

2. To be continued…
• Axiom 1: Completeness
• Axiom 2 : Transitivity
• Axiom 3 : Continuity
• Axiom 4 : Local Non-satiation
• Axiom 5 : Strict Monotonicity
• Axiom 6 : Convexity

3. To be continued…
• Axiom 1: Completeness. For all 𝑥,𝑦∈𝑋 we have that 𝑥≿𝑦 or 𝑦≿𝑥 (or
both).
• Axiom 2: Transitivity. For all 𝑥,𝑦,𝑧∈𝑋, if 𝑥≿𝑦 and 𝑦≿𝑥 then 𝑥≿𝑧.
• Axiom 3: Continuity. The preference relation ≿ on 𝑋 is continuous if it is
preserved under limits. That is, for any sequence of pairs {(𝑥𝑛,𝑦𝑛)}𝑛=1∞
with 𝑥𝑛≿𝑦𝑛 for all 𝑛, 𝑥=lim𝑛→∞𝑥𝑛, and 𝑦=lim𝑛→∞𝑦𝑛, we have 𝑥≿𝑦.
• Axiom 4: Local nonsatiation. The preference relation ≿ is locally
nonsatiated if for all 𝑥∈𝑋 and for all 𝜖>0 there is 𝑦∈𝑋 such that ‖𝑦−𝑥‖≤𝜀
and 𝑦≻𝑥.

4. To be continued…
• Axiom 5: Strict monotonicity. The preference relation ≿ on 𝑋 is
monotone if for all 𝑥,𝑦∈ℝ+𝑛, 𝑥≥𝑦 implies 𝑥≿𝑦. It is strongly
monotone if 𝑥≫𝑦 implies 𝑥≻𝑦.
• Axiom 6: Convexity. The preference relation ≿ is convex if for every 𝑥
,𝑦,𝑧∈𝑋, the superior set (𝑦∈ℝ+𝑛∶𝑦≿𝑥) is convex. If, 𝑦≿𝑥 and 𝑧≿𝑥,
then 𝑡𝑦+(1 – 𝑡)𝑧≿𝑥, for all 𝑡∈[0,1]. Strict convexity implies that for
every 𝑥,𝑦≠𝑧∈𝑋, if 𝑦≿𝑥 and 𝑧≿𝑥, then 𝑡𝑦+(1 – 𝑡)𝑧≻𝑥, for all 𝑡∈(0,1).

5. Graphical Representation of The Preference
Relation
Hypothetical preferences
satisfying Axioms 1 and 2

6. To be continued…
Hypothetical
preferences satisfying
Axioms 1 – 3.

7. To be continued…
Hypothetical
preferences satisfying
Axioms 1 – 4

8. To be continued…
Hypothetical preferences
satisfying Axioms 1 – 4
but violates 5.

9. To be continued…
Hypothetical preferences
satisfying Axioms 1 – 5

10. To be continued…
Hypothetical preferences
satisfying Axioms 1 – 6.

11. Utility function

12. Construction of Utility
Function

13. Properties of utility function
• u(x) represents ≿, that is α(x)≥ α(y) x≿ y
• u(x) is a continuous function.

14. Preference and utility
A real-valued function u: → ℝ is called a utility function representing the preference relation ≿, if for
all 𝐱, 𝐲∈ , (𝐱) ≥ (𝐲) ⇔𝐱≿𝐲.
The lexicographic preference relation:
Define 𝒙≿𝒚 on 𝑋 = if “𝒙1>𝒚1” or “𝒙1 = 𝒚1” and “𝒙2 ≥ 𝒚2”. This is known as the lexicographic
preference relation.

15. Theorem: Existence of a real-valued function representing the preference relation,
≿
If the binary relation ≿ is complete, transitive, continuous, and strictly monotonic,
there exists a continuous real-valued function, 𝑢: → ℝ, which represents ≿.
Proof:
let the relation be complete, transitive, continuous and strictly monotonic. Let
e=(1,….,1) be a vector of ones. We denote the diagonal ray in by Z.

16. αe Z for all nonnegative scalars α≥0. If α=1, then αe=(1,….,1) coincides with e. if
α>1, the point αe lies further out from the origin than e. for 0<α<1, the point αe
lies between the origin and e. for every x monotonicity implies that x.
Also for any such that ex, we have ex. monotonicity and continuity can then be
shown to imply that there is a unique value α(x)[0,α] such that α(x)e. By
continuity, the upper and lower contour sets of x are closed. Hence, the sets
A={α and B={ α arenonempty and closed.
By completeness of The nonemptyness and closedness of A and B, along with
the fact that is connected, imply that A Thus there exist a scalar αsuch that αe.

17. Furthermore, by monotonicity, e e whenever >. Hence, there can be almost one
scalar satisfying αe. This scalar is α(x).
By completeness of The nonemptyness and closedness of A and B, along with the
fact that is connected, imply that A Thus there exist a scalar αsuch that αe.
Furthermore, by monotonicity, e e whenever >. Hence, there can be almost one
scalar satisfying αe. This scalar is α(x).

19. We now take (x) as our utility function. We assign a utility value u(x) = α(x) to
every x.
We need to check two properties of this function :
u(x) represents ≿, that is α(x)≥ α(y) x≿ y
u(x) is a continuous function.
Suppose, α(x) ≥α(y)
By monotonicity , this implies that α(x)e ≿ α(y)e. Since x∼α(x)e and y∼α(y)e,
we have x≿ y.
Suppose on the other hand, ,x ≿y
Then α(x)e∼ x≿ y ∼ α(y)e and so by monotonicity ,we must have α(x)≥α(y)
Hence ,α(x) ≥ α (y) x≿ y

20. Continuity: We have inverse image under u of every open ball in R is
open in . Because open balls in R are merely open intervals, this is
equivalent to showing that u-1((a,b)) is open in for every a<b.
Now, u-1 ((a,b)) = ⦃x€|a<u(x)<b
=⦃x€ |ae≺u(x)e≺be⦄
=⦃x€ |ae≺x≺be⦄
Or equivalently, u-1((a,b))=> (ae)⋂≺(be)
By the continuity of ≿, the sets ⪯(ae) and ⪰(be) are closed in X=.

21. Consequently, the two sets on the right hand side, being the complement of these
closed sets, are open in Rn+.The theorem tells us that preference relations can be
represented by a continuous utility function.
Thus utility function is invariant to positive monotonic transforms or unique up to a
positive monotonic transform. This is captured in the following theorem.

22. Theorem: Invariance of the utility function to positive monotonic
transforms
Let ≿ be a preference relation on and suppose (𝐱) is a utility function
that represents it. Then (𝐱) also represents ≿ if and only if (𝐱) = ((𝐱)) for
every , where 𝑓: → ℝ, is strictly increasing on the set of values taken on
by 𝑢.
Properties of preferences and utility function, (𝐱)
Let ≿ be represented by u: → ℝ. then, 𝑢(𝒙) is
1. Strictly increasing if and only if ≿ is strictly monotonic.
2. Quasiconcave if and only if ≿ is convex.
3. Strictly quasiconcave if and only if ≿ is strictly convex

23. The Leontief preferences:
It is possible for continuous preferences not to be representable by a differentiable
utility function.
The simplest example is the Leontief preferences where 𝑥 ′′ ≿𝑥 ′ if and only if Min { ,
} ≥ Min{ , }. The non-differentiability arises because of the kink in the indifference
curves when 𝑥1 = 𝑥2.

25. • Definition : the relationship among prices,
income and maximized value of utility on be
summarized by a real valued function V : ×ℝ+
→ ℝ defined as follows,

26. • The function (𝑝, 𝑦) is called the indirect utility
function. It is the maximum value function
corresponding to the consumers’ utility
maximization problem(Outcome of UMP).
When (𝑥) is continuous (𝒑, 𝑦) is well defined for
all 𝒑≫𝑜𝑎𝑛𝑑𝑦 ≥ 𝑜. If in addition (𝑥) is strictly
quasi concave then the solution is unique. We
write it as (𝒑, 𝒚), the consumer’s demand
function. The maximum level of utility at price p
and income y can be achieved when (𝒑‚𝒚) is
chosen. Hence,
• 𝑣(𝒑‚𝑦) = 𝑢(𝑥(𝒑‚𝑦))

27. • Geometrically, we can think of v(p, y) as giving
the utility level of the highest indifference
curve the consumer can reach, given prices p
and income y

28. • If (𝑥) a continuous utility function
representing a locally nonsatiated preference
relation ≿and strictly increasing on , then 𝑉(𝒑,
𝑦) is defined as:
• 1. Continuous on
• 2. Homogenous of degree zero in (𝒑, 𝑦),
• 3. Strictly increasing in 𝒚,
• 4. Decreasing in 𝒑,
• 5. Quasiconvex in (p,y),

29. • Moreover, it satisfies

30. • To proof 2, We must show that v (p,y) = v (tp,ty) for
all t > 0.
•
• v(tp,ty) =[max u(x) s.t. tp·x ≤ ty], which is
equivalent to [max u(x) s.t. p·x ≤ y] because we may
divide both sides of the constraint by t > 0 without
affecting the set of bundles satisfying it.
• Now , v(tp,ty) =[max u(x) s.t. p·x ≤ y]=v(p,y).
• s.𝑡. 𝒑.𝑥 ≤ 𝑦
•

31. • Property 3 and 4 state that any relaxation of
the consumer’s budget constraint can never
cause the maximum level of achievable utility
to decrease, whereas any tightening of the
budget constraint can never cause that level
to increase.
• To keep things simple, we’ll assume for the
moment that the solution to
• 𝑉(𝒑, 𝑦) =
• s.𝑡. 𝒑.𝑥 ≤ 𝑦

32. • is strictly positive and differentiable,
• where (p,y)>>0 and that u(·) is differentiable
with ∂u(x)/∂xi > 0, for all x>>0.
• Since u(.) is strictly increasing, the constraint
must bind at optimum.
• We write now,
• 𝑉(𝒑, 𝑦) =
• s.𝑡. 𝒑.𝑥 = 𝑦

34. • We write the Lagrangian as
• L(x,λ)= u(x)−λ(p·x−y).
• Now, for (p,y)>>0,
• Let, x∗ = x(p,y) By our additional assumption, x ∗>>0, so we
may apply Lagrange’s theorem to conclude that there is a λ∗∈
R such that
• ∂L(x∗,λ∗)/ ∂xi =∂u(x∗) /∂xi − λ∗ pi = 0, i = 1,...,n.
• Note that because both pi and ∂u(x∗)/∂xi are positive, so, too,
is λ∗.
• Our additional differentiability assumptions allow us to now
apply the Envelope theorem, to establish that v(p,y) is strictly
increasing in y. According to the Envelope theorem, the partial
derivative of the maximum value function v(p,y) with respect
to y is equal to the partial derivative of the Lagrangian with
respect to y evaluated at (x∗,λ∗).

35. • ∂v(p,y)/ ∂y = ∂L(x∗,λ∗)/ ∂y = λ∗> 0
• Thus, v(p,y) is strictly increasing in y > 0. So,
because v is continuous, it is then strictly
increasing on y ≥ 0.

37. • Suppose we could show that every choice the
consumer can possibly make when he faces budget
is a choice that could have been made when he
faced either budget or budget. It then would be
the case that every level of utility he can achieve
facing is a level he could have achieved either
when facing or when facing . Then, of course, the
maximum level of utility that he can achieve over
Bt could be no larger than at least one of the
following: the maximum level of utility he can
achieve over , or the maximum level of utility he
can achieve over . But if this is the case, then the
maximum level of utility achieved over can be no
greater than the largest of these two.

41. • For property 6 ,
• Roy’s identity. This says that the consumer’s Marshallian
demand for good i is simply the ratio of the partial derivatives
of indirect utility with respect to pi and y after a sign change.
(Note the minus sign in 6.)

43. • If (𝑥)is continuous and strictly increasing, then the
expenditure function 𝑒(𝑝, 𝘶)has following properties-
• 1.Zero when 𝙪takes on the lowest level of utility inU,
• 2. Continuous on its domain 𝑅𝑛×U
• 3. For all 𝒑>>0, strictly increasing and unbounded
above in u.
• 4.Increasing in𝒑,
• 5.Homogeneous of degree 1 in𝒑
• 6.Concave in𝒑.
•
• If, in addition, (. )is strictly quasi concave, we have

44. • Shephard’s Lemma: (𝒑,) is differentiable in p
at(𝑝0, 𝘶0)with 𝑝0>>0,and

45. • Property 1: e (p, u) is zero when u takes on
the lowest level of utility in U.
• Proof: To prove property 1, note that the
lowest value in U is u (0)because u(.)is strictly
increasing on . Consequently, e (p, u (0))= 0
because x = 0 attains utility u (0)and requires
an expenditure of p · 0 = 0.
• (Proved)

46. • Property 2: e (p, u) is continuous on its
domain * U.
• Proof: Property 2 follows from the theorem of
maximum.
• Property 3: For all p »0, e (p, u) is strictly
increasing and unbounded above in u.

50. • increasing.
• (Proved)
• Property 4: e (p, u) is increasing in p.
• Proof: Using the Envelop theorem and differentiating
equation (p.2) with respect to yields,
• From the proof of property 3 we know that

51. • Property 5: e (p, u) is homogeneous of degree
1 in p.
• Proof: Expenditure function is homogeneous
of degree one in p, i.e. , for all p ,u and t > 0 ,
e (tp, u) = te(p, u)

54. • But now we are home free. Because t ≥ 0 and (1-t)≥ 0,
we can multiply the first of
these by t, the second by (1-t), and add them. If we
then substitute from the definition of , we obtain
• The left-hand side is just the convex combination of the
minimum levels of expenditure necessary at prices p1
and p2 to achieve utility u, and the right-hand side is
the minimum expenditure needed to achieve utility u
at the convex combination of those prices. In short,
this is just the same as (P.5), and tells us that

57. • 1.3.3: Relations Between Indirect Utility and Expenditure
Functions
Though the indirect utility function and the expenditure
function are conceptually distinct, there is obviously a close
relationship between them. In particular, fix (p,y) and let u =
v(p,y). By the definition of v, this says that at prices p, utility
level u is the maximum that can be attained when the
consumer’s income is y. Consequently, at prices p, if the
consumer wished to attain a level of utility at least u, then
income y would be certainly large enough to achieve this. But
recall now that e(p, u) is the smallest expenditure needed to
attain a level of utility at least u. Hence, we must have e(p,u) ≤
y. Consequently, the definitions of v and e lead to the
following inequality:
e(p,v(p,y)) ≤ y, ∀(p,y)>>0
Next, fix (p,u) and let y = e(p,u). By the definition of e, this
says that at prices p , income y is the

58. smallest income that allows the consumer to
attain at least the level of utility u.
Consequently, at prices p, if the consumer’s
income were in fact y, then he could attain at
least the level of utility u. Because v(p,y) is the
largest utility level attainable at prices p and
with income y, this implies that v(p,y) ≥ u.
Consequently, the definitions of v and e also
imply that
v(p,e(p,u)) ≥ u ∀(p,u) ∈×U.

59. • The next theorem demonstrates that under certain familiar
conditions on preferences, both of these inequalities, in
fact, must be equalities.
• Let v(p,y) and e(p,u) be the indirect utility function and
expenditure function for some consumer whose utility
function is continuous and strictly increasing. Then for all
p>>0, y ≥ 0, and u ∈U:
• 1. e(p,v(p,y)) = y.
• 2. v(p,e(p,u)) = u.
• There are close relationship between utility maximisation
and expenditure minimisation. The two are conceptually
just opposite sides of the same coin. Mathematically, both
the indirect utility function and the expenditure function
are simply the appropriately chosen inverses of each other.

60. • Proof: Because u(·) is strictly increasing on ,
it attains a minimum at x = 0, but does not
attain a maximum. Moreover, because u(·) is
continuous, the set U of attainable utility
numbers must be an interval. Consequently, U
= [u(0), u¯)] for u¯ > u(0), and where u¯ may
be either finite or +∞.

61. • To prove 2, fix (p, u) ∈ × [u(0), u¯]. now, v(p, e(p,
u)) ≥ u. Again, to show that this must be an equality,
suppose to the contrary that v(p, e(p, u)) > u. There
are two cases to consider: u = u(0) and u > u(0). We
shall consider the second case only, leaving the first
as an exercise. Letting y = e(p, u), we then have v(p,
y) > u. Now, because e(p, u(0)) = 0 and because e(·) is
strictly increasing in utility by properties of the
expenditure function, y = e(p, u) > 0. Because v(·) is
continuous by properties of the utility function, we
may choose ε > 0 small enough so that y − ε > 0 and
v(p, y − ε) > u. Thus, income y − ε is sufficient, at
prices p, to achieve utility greater than u. Hence, we
must have e(p, u) ≤ y − ε. But this contradicts the fact
that y = e(p, u).

62. Consumer Decision Problem
Utility Maximization Problem:-
Under preference assumption total expenditure must not exceed
income. The consumer always wants to maximize utility and
minimize expenditure.
Definition: The consumer’s utility maximization problem can be
defined
max 𝑥∈ℝ+
𝑛𝑢(𝑥)
S.T 𝑝 · 𝑥 ≤ 𝑦
And the budget set is: B= {x|xϵℝ+
𝑛: 𝑝 · 𝑥 ≤ 𝑦}

63. The solution to the consumer utility maximization problem
This figure is showing the solution of consumer decision
problem .This graph shows the relationship between quantity
demanded of xᵢ and its own price Ρᵢ is the standard demand
curve for i.

64. The consumer’s problem and consumer demand
behavior

65. THE EXPENDITURE MINIMIZATION PROBLEM:
We define the expenditure function as the minimum
value function,
For all 𝑝≫0 and all attainable utility levels 𝑢.Let 𝑈={𝑢(𝑥)|𝑥∈}
denote the set of attainable utility levels. Thus the domain of (.)
is ×𝑈. If (𝑥) is continuous and strictly quasi concave, the solution
will be unique .So we can denote the as the function (𝑝‚𝑢)≥0.If (𝑝
‚𝑢) solves the minimization problem ,the lowest expenditure
necessary to achieve the utility level 𝑢 at price 𝑝 will be exactly
equal to the cost of bundle .That means:
𝑒(𝑝‚𝑢)=𝑝.(𝑝‚𝑢)

66. RELATION BETWEEN MARSHALIAN AND HICKSIAN DEMAND
FUNCTION:
The following relation between the Marshallian and Hicksian
demand function for p>>0, y≥0, u∈U and i=1….n.
𝟏.(𝒑‚𝒚)= (𝒑‚𝒗(𝒑‚𝒚))
𝟐.𝒙i
h(𝒑‚𝒖)= (𝒑‚𝒆(𝒑‚𝒖)).

67. Diagram relating four relations :

68. 1.5.1. Theorem: Homogeneity and Budget Balancedness

70. 1.5.2.1. Slutsky Equation
Let, x(p, y) be the consumer’s Marshallian demand system. Let u* be the level of utility the
consumer achieves at prices p and income y. Then,
Proof: From the duality between Marshallian and Hicksian demand function we know that,
For all level of utility u* and p >>0 . Applying the chain rule to differentiate both sides with respect
to Pj , we get,
…….. (1)

71. Where u* = v (p, y).
From the relations between IUF and EF , we know that
e(p, u*) = e(p, v(p,y)) = y ………. (2)
From Shephard lemma ,
…………. (3)
Substitute from (2) & (3) into (1) gives us,
Rearranging this we get,

72. 1.5.2.4. Theorem: Symmetric Substitution Terms

73. By Young’s theorem, the order of differentiation of the EF makes no difference, so
…….. (2)
Together equation (1) & (2) gives us ,

74. 1.5.2.2. Giffen Paradox using Slutsky equation
The Slutsky equation is :
……….. (1)
To explain giffen paradox, the idea about the sign of the Slutsky equation is needed which is implied
by the theorem of negative own substitution terms of Slutsky equation, which says,
That is, the Hicksian demand curve must always be negative sloped to their own price.

75. According to Hicks, for a good to be giffen good, following 3 conditions are essential:
1. The good must be inferior with strong negative income effect.
2. The substitution effect must be small.
3. The proportion of income spent for the inferior good must be very large.
Now, for any other good, as the price of the good rises, the SE makes consumer purchase less of it,
and the more of the substitute goods.
But, giffen case describes that the increase in price reduces the consumer’s purchasing power so
much that s/he increases her/his consumption of the inferior good.
It gets clearer with the help of the sign of Slutsky equation.

77. Negative Semidefinite Substitution Matrix
xh(p, u)= consumer’s system of Hicksian
demands
let there be a matrix called the substitution
matrix that contains all the Hicksian
substitution terms.

78. Then the matrix σ(p, u) is negative semi definite
• Proof: The proof of this is immediate when we
recall from the proof of the previous theorem
that each term in this matrix is equal to one of
the second-order price partial derivatives of the
expenditure function. In particular, we have seen
that
∂xh
i(p, u)/∂pj=∂2e(p, u)/∂pj∂pi
for all i and j, so in matrix form we must have

80. • Symmetric and Negative Semidefinite Slutsky
Matrix
x(p, y) =the consumer’s Marshallian demand
system
form the entire n×n Slutsky matrix of price and
income responses as follows:

82. s(p, y) is symmetric and negative semidefinite
Proof: Let u∗ be the maximum utility the
consumer achieves at prices p and income y,
so u∗ = v(p, y). Solving for the ijth substitution
term from the Slutsky equation, we obtain

83. If now we form the matrix s(p, y), it is clear
from this that each element of that matrix is
exactly equal to the corresponding element of
the Hicksian substitution matrix σ (p, u∗). the
substitution matrix is symmetric for all u, and
it is negative semidefinite for all u, so it will be
both symmetric and negative semidefinite at
u∗, too. Because the two matrices are equal,
the Slutsky matrix s(p, y) must also be
symmetric and negative semidefinite.

84. Welfare Evaluation of price change

86. Both EV & CV corresponds to the measurements of the changes in a money matric utility
function,
provide a correct welfare ranking of P0 & P1,
consumer is better of P1 iff this measures are positive.

88. EV > CV normal good
EV < CV inferior good
EV = CV no income effect

89. The deadweight loss from commodity taxation

92. Solar Power Irrigation Plants As A Solution Of Irrigation
and Electric Power Crisis In Bangladesh
Supervised By:
Md. Gias Uddin khan
Assistant professor
Dept. of economics .
Presented By :
Lupa Bhoumik
Reg. No. : 2013231035
3rd Year 2nd Semester
Dept. of economics.
Review of Articles
Eco 312, Seminar III
24th January , 2018.

93. Solar Power Irrigation System in Bangladesh
Contents :
 Introduction
 Previous study
 Research methodology
 Data analysis and Findings
 Conclusion & Recommendation
 References.

94. Introduction
Agriculture of Bangladesh:
• Comprises about 15.33% of the country’s GDP.
• Employs around 45% of the total labour force. [BBS,2016].
Bangladesh’s energy crisis and irrigation:
Irrigation is defined as a system that distributes water to targeted area.
 Irrigation sector in Bangladesh suffers due to the countywide electricity crisis. Energy
infrastructure is quite small, inefficient, and poorly managed.
 Solar power irrigation system brings a clean & simple alternative to the conventional fuel fired
engine or grid electricity driven pump in this regard to resolve the issue.
Solar Powered Irrigation System :
Using submergible pumps, PV cells are used to generate electricity , which is stored in
rechargeable batteries. Then current is passed by wire to DC pump which collects water and store
to reserve tank. Then water is passed to narrow canal to crops land.

95. Previous Study :
The number of published paper regarding solar irrigation plant in Bangladesh is very few as this
concept is quite new in the country.
 Solar power generated electricity is environmentally feasible & ample opportunity in Bangladesh
& top priority in the 21st century. [Khalequzzaman,2007].
 Off-grid water pumping by using solar energy is a viable option. [ Odeh et. al ,2009] .
 Average annual sunlight hours in Bangladesh compared with other DCs like Germany & Spain ,
notable for development in solar energy sector. [ Shakir, Rahman, & Shahadat, 2012] .
Research Methodology :
• Qualitative statistical analysis using primary data.
• Secondary data were collected from Bangladesh Bank websites.
• NPV , IRR, & simple Payback period were investigated to determine the economic
feasibility of the project .

96. Data Analysis and Findings
Present irrigation scenario in Bangladesh [ Roy,2016]
 Irrigation pumps run by electricity :
Total : 0.27 ml pumps
Area coverage : 1.7 ml hectares of land
Electricity consumption : 1500 MW.
 Irrigation pumps run by diesel :
Total :1.34 ml pumps
Area coverage : 3.4 ml hectares of land
Fuel consumption : 1 ml tons diesel/ year worth $900 ml
Subsidy : $ 280 ml .

97. Solar Pump Implementation Status :
Approved : 241 pumps
Installed : 108 pumps
Under consideration : 133 pumps
Target : 50,000 by 2025 [ PDB]
Funding sources : Grant : IDCOL,BCCRF, ADB, USAID.
: Loan : IDA , JICA.
How Solar Water Pump Works : [ www.economicsdiscussions.com ]

98. How Solar Water Pumps works : [ www.economicsdiscussions.com ]

99. Cost analysis : [ Roy,2016 ]

100. Financial Structure
Sample of an 11 kwp solar water pump [BPDB-website,nov.2016]

101. Advantages of Solar water pump
 The production of power is environment friendly,
 No fuel cost is involved & lower maintenance cost,
 Solar PV systems are durable,
 No noise pollution is generated ,etc.
Why replace Diesel with Solar Pumps :
 Frequent technical problems & high maintenance costs for diesel pumps.
 Increasing cost of diesel & on-going subsidy burden on government.
 Transportation of diesel to the field is challenging.
CO2 Emission in equivalent system : [ Ahammed ,2008]
Parameter Unit Value
solar energy kg/day 0
grid electricity kg/day 2566.24
diesel fuel kg/day 42.88

102. Challenges of Solar system :
 High installation cost ,
 Long installation time ,
 Limited use ,
 The water yield of the solar pump varies according to sunlight.
Which have major impact on potentiality of using solar energy for irrigation.
Policy Recommendations :
 Social awareness focusing on the sustainable use of solar power plant.
 Authority can encourage citizens announcing particular percentage of tax redemption to those
who installs solar pump. [Hoque ,2016 ].
Role of Government :
 Proper regulations & subsidies should be implemented by GOB to successfully expand solar
powered irrigation system .

103. Conclusion
 Solar power irrigation system optimizes the usage of water by reducing
wastage & human intervention by farmers.
 Offers clean operation with no danger of environment pollution.
Therefore , even though high initial cost is required , the overall benefits of Solar
Pump Irrigation System are remarkable and in the long run this system is economical.

104. References :
1. Hoque, N., Roy,A., & Alam, M.R. (2016). Techno - Economic Evaluation
of Solar Irrigation Plants Installed in Bangladesh. International Journal of
Renewable Energy Development, 5(1) ,PP: 73–78.
2. Biswas, H., & Hossain, F. (2013). Solar Pump : A Possible Solution of
Irrigation and Electric Power Crisis of Bangladesh. International Journal of
Computer Applications ( 0975-8887). Volume 62- No. 16.
3. Ahammed, F., & Ahmed, D.T. (2008). Applications of Solar PV On Rural
Development in Bangladesh. Journal of Rural and Community
Development3,pp:93-103.
4. Khan, S.I. , Sarkar , M.R. , & Islam , M.Q. (2013). Design and Analysis of a
Low Cost Solar Water Pump for Irrigation in Bangladesh. Journal of
Mechanical Engineering , Vol. ME 43,No.2 .
5. Bangladesh Bank Websites, Bangladesh Bank.
6. Bangladesh Bureau of Statistics (BBS),2016.
7. Bangladesh Power Development Board.

105. Thank You .

106. Are there any Questions ,
Please ?