Economics at your fingertips  

Determinants of willingness-to-pay for attributes of power outage - An empirical discrete choice experiment addressing implications for fuel switching in developing countries

Kahsay Haile Zemo, Habtamu Tilahun Kassahun and Søren Olsen

Energy, 2019, vol. 174, issue C, 206-215

Abstract: In many developing countries, there is a desire to switch from traditional fuel to renewable energy. However, the supply of renewable energy is often characterized by a severe lack of reliability. This paper seeks to answer if, and to what extent, power outages inhibit switching from fuelwood to hydropower based electricity supply, and factors that determine households' willingness to pay to reduce power outages using a unique combination of mixed logit and seemingly unrelated regression models. We find that frequency, duration, timing of power outages and advance notice are important characteristics determining whether households switch to electricity. The less reliable the electricity supply is the less likely households are to switch to it. Therefore, unreliability in electricity supply maintains the current use of fuelwood, resulting in continued environmental and health problems. Hence, policymakers should work to improve reliability to speed up the desired fuel switching process.

Keywords: Fuel switching; Power outage; Reliability of electricity supply; Developing country; Discrete choice experiment; Willingness-to-pay (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
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:

DOI: 10.1016/

Access Statistics for this article

Energy is currently edited by Henrik Lund and Mark J. Kaiser

More articles in Energy from Elsevier
Bibliographic data for series maintained by Haili He ().

Page updated 2020-10-20
Handle: RePEc:eee:energy:v:174:y:2019:i:c:p:206-215