Willingness to Pay among Swedish Households to Avoid Power Outages: A Random Parameter Tobit Model Approach

Fredrik Carlsson and Peter Martinsson

The Energy Journal, 2007, vol. 28, issue 1, 75-90

Abstract: Using a contingent valuation survey, we elicit Swedish households’ willingness to pay (WTP) to avoid power outages. In the study respondents are asked to state their WTP for avoiding nine different types of outages. We therefore apply a random parameter Tobit model since there is cross-sectional heterogeneity and a proportion of zero responses. Based on the estimations, we find that the WTP depends positively on the duration of the outages, and that WTP is significantly higher for unplanned outages. The overall variation in the WTP due to observed heterogeneity in housing and socio-economic variables is small compared to the pure effects of power outages. Policy implications of those findings are discussed.

Keywords: Power outages; Contingent valuation; Random parameters; Tobit model; electricity; Sweden (search for similar items in EconPapers)
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.5547/ISSN0195-6574-EJ-Vol28-No1-4 (text/html)

Related works:
Journal Article: Willingness to Pay among Swedish Households to Avoid Power Outages: A Random Parameter Tobit Model Approach (2007)
Working Paper: Willingness to Pay among Swedish Households to Avoid Power Outages - A Random Parameter Tobit Model Approach (2004)
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:sae:enejou:v:28:y:2007:i:1:p:75-90

DOI: 10.5547/ISSN0195-6574-EJ-Vol28-No1-4

Access Statistics for this article

More articles in The Energy Journal
Bibliographic data for series maintained by SAGE Publications ().