Households’ Willingness to Pay for Undergrounding Electricity and Telecommunications Wires

Ben McNair, Jeffrey Bennett and David Hensher

MPRA Paper from University Library of Munich, Germany

Abstract: Underground telecommunications and low-voltage electricity networks have several advantages over overhead networks including reliability of supply, safety and improved visual amenity. The economic viability of replacing existing overhead networks with new underground networks depends on the value of these benefits to households, but no complete value estimates are available in the literature. This paper represents a contribution towards addressing this research gap. A stated choice survey is used to estimate willingness-to-pay for undergrounding in established residential areas in Canberra. Average willingness-to-pay is at least $6,838 per household and there is significant variation in preferences over the population. The results suggest that benefits would be highest in areas with higher household income and older residents where visual amenity, safety, tree trimming or restrictions on the use of yard space are of concern.

Keywords: Stated preference; willingness-to-pay; undergrounding; supply reliability (search for similar items in EconPapers)
JEL-codes: L94 Q51 (search for similar items in EconPapers)
Date: 2010-05
New Economics Papers: this item is included in nep-dcm, nep-ene and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:23164

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