The effect of power outages and cheap talk on willingness to pay to reduce outages

Fredrik Carlsson, Peter Martinsson and Alpaslan Akay

Energy Economics, 2011, vol. 33, issue 5, 790-798

Abstract: Using an open-ended contingent valuation survey, we analyze how (i) experience of a power outage due to one of the worst storms ever to hit Sweden and (ii) a cheap talk script affect respondents' WTP to avoid power outages. Experience significantly increases and a cheap talk script significantly decreases the proportion of respondents with zero WTP, and as a result stated WTP is lower with experience and the cheap talk script. The paper concludes with a discussion on the use of valuation studies shortly after the occurrence of an undesirable event.

Keywords: Contingent; valuation; Cheap; talk; Experience; Power; outages (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (45)

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Related works:
Working Paper: The Effect of Power Outages and Cheap Talk on Willingness to Pay to Reduce Outages (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:33:y:2011:i:5:p:790-798

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