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The Cost of Power Outages in the Business and Public Sectors in Israel: Revealed Preference vs. Subjective Valuation

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Author Info
Michael Beenstock
Ephraim Goldin
Yoel Haitovsky
Abstract

Cross-section data on investment in back-up generators and uninterruptable power supplies (UPS) are used to infer the implied cost of electricity outages in the business and public sectors in Israel. Two-limit tobit models of the demand for back-up are estimated and used to simulate the mitigated and unmitigated cost of power outages. These "revealed preference estimates of outage costs are then compared with estimates based on the method of subjective evaluation.

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Publisher Info
Article provided by International Association for Energy Economics in its journal The Energy Journal.

Volume (Year): 18 (1997)
Issue (Month): 2 ()
Pages: 39-62
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Handle: RePEc:aen:journl:1997v18-02-a03

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F0 - International Economics - - General

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  1. Roop Jyoti & Aygul Ozbafli & Glenn Jenkins, 2006. "The Opportunity Cost of Electricity Outages and Privatization of Substations in Nepal," Working Papers 1066, Queen's University, Department of Economics. [Downloadable!]
  2. David F. Layton & Klaus Moeltner, 2000. "A Censored Random Coefficients Model for Pooled Survey Data with Application to the Estimation of Power Outage Costs," Econometric Society World Congress 2000 Contributed Papers 0912, Econometric Society. [Downloadable!]
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  3. Adeola Adenikinju, 2005. "Analysis of the cost of infrastructure failures in a developing economy: The case of the electricity sector in Nigeria," Research Papers RP_148, African Economic Research Consortium. [Downloadable!]
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This page was last updated on 2009-12-13.

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