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

Fredrik Carlsson and Peter Martinsson

No 154, Working Papers in Economics from University of Gothenburg, Department of Economics

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 (search for similar items in EconPapers)
JEL-codes: C25 C93 D12 Q41 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2004-12-20
New Economics Papers: this item is included in nep-dcm, nep-ene and nep-res
Note: Published in Energy Journal, 2007, Vol 28, pp. 75-89.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Published in Energy Journal, 2007, pages 75-89.

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Willingness to Pay among Swedish Households to Avoid Power Outages: A Random Parameter Tobit Model Approach (2007)
Journal Article: Willingness to Pay among Swedish Households to Avoid Power Outages: A Random Parameter Tobit Model Approach (2007)
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:hhs:gunwpe:0154

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Papers in Economics from University of Gothenburg, Department of Economics Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Jessica Oscarsson ().