Households' valuation of power outages in major cities of Ethiopia: An application of stated preference methods
In many developing countries, electricity consumers experience frequent supply interruptions, leading to high coping costs and stifled investment, which contribute to energy poverty. In 2019, we implemented stated preference experiments to estimate households' preferences for improved electricity supply in a nationally representative sample of urban households, covering 42 cities in Ethiopia. In the first split-sample experiment, we presented respondents with a contingent valuation (CV) scenario that alternatively elicited their willingness to pay (WTP) for reduced evening-time power outages, or their willingness to accept (WTA) compensation for increased disruptions. Then, we implemented a discrete choice experiment with the same respondents to understand preferences for the frequency, duration and time of a day attributes of outages, as well as the value of advanced notification. The results from the CV survey show that household WTP is approximately 40 birr (US
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- Energy
- 3802 Econometrics
- 3801 Applied economics
- 3502 Banking, finance and investment
- 1402 Applied Economics
- 0913 Mechanical Engineering
- 0906 Electrical and Electronic Engineering
Citation
Published In
DOI
ISSN
Publication Date
Volume
Related Subject Headings
- Energy
- 3802 Econometrics
- 3801 Applied economics
- 3502 Banking, finance and investment
- 1402 Applied Economics
- 0913 Mechanical Engineering
- 0906 Electrical and Electronic Engineering