EconPapers    
Economics at your fingertips  
 

Economic consequence analysis of electric power infrastructure disruptions: General equilibrium approaches

Ian Sue Wing and Adam Z. Rose

Energy Economics, 2020, vol. 89, issue C

Abstract: We develop a stylized two-sector analytical general equilibrium model that elucidates mechanisms of adjustment to widespread, long-duration electric power disruptions. Algebraic solutions illustrate the relative importance of resilience through producer and consumer input substitutability and mitigation investment in backup infrastructure capacity in moderating the economy-wide costs of outages. Simulations of the impacts of a two-week power outage on California's Bay Area economy using both the analytical model and a computational general equilibrium model yield welfare losses that are substantially smaller than stated-preference estimates of willingness to pay. Results highlight the role of resilience in moderating consequences of energy supply shocks.

Keywords: Electricity disruptions; Analytical general equilibrium modeling; Reliability; Resilience (search for similar items in EconPapers)
JEL-codes: C63 D58 L94 Q43 Q54 R13 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0140988320300955
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:89:y:2020:i:c:s0140988320300955

DOI: 10.1016/j.eneco.2020.104756

Access Statistics for this article

Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

More articles in Energy Economics from Elsevier
Bibliographic data for series maintained by Nithya Sathishkumar ().

 
Page updated 2021-03-09
Handle: RePEc:eee:eneeco:v:89:y:2020:i:c:s0140988320300955