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Choice experiment study on the willingness to pay to improve electricity services

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  • Abdullah, Sabah
  • Mariel, Petr

Abstract

Modern forms of energy are an important vehicle towards poverty alleviation in rural areas of developing countries. Most developing countries' households rely heavily on wood fuel which impacts on their health and socio-economic status. To ease such a dependency, other modern forms of energy, namely electricity, need to be provided. However, the quality of the electricity service, namely reliability, is an important factor in reducing this dependency. This paper discusses a choice experiment valuation study conducted among electrified rural households located in Kisumu, Kenya, in which the willingness to pay (WTP) to avoid power outages or blackouts was estimated. A mixed logit estimation was applied to identify the various socio-economic and demographic characteristics which determine preferences in reducing power outages among a household's users. In conclusion, several of the socio-economic and demographic characteristics outlined in this paper were identified and can assist service differentiation to accommodate the diverse households' preferences towards the improvement of the electricity service.

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Bibliographic Info

Article provided by Elsevier in its journal Energy Policy.

Volume (Year): 38 (2010)
Issue (Month): 8 (August)
Pages: 4570-4581

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Handle: RePEc:eee:enepol:v:38:y:2010:i:8:p:4570-4581

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Web page: http://www.elsevier.com/locate/enpol

Related research

Keywords: Power outages Willingness to pay Random parameter logit;

References

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Citations

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Cited by:
  1. Stigka, Eleni K. & Paravantis, John A. & Mihalakakou, Giouli K., 2014. "Social acceptance of renewable energy sources: A review of contingent valuation applications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 32(C), pages 100-106.
  2. Pepermans, Guido, 2011. "The value of continuous power supply for Flemish households," Energy Policy, Elsevier, vol. 39(12), pages 7853-7864.
  3. Elcin Akcura, 2013. "Information effects on consumer willingness to pay for electricity and water service attributes," Working Papers 160, European Bank for Reconstruction and Development, Office of the Chief Economist.
  4. Akcura, E., 2011. "Information Effects in Valuation of Electricity and Water Service Attributes Using Contingent Valuation," Cambridge Working Papers in Economics 1156, Faculty of Economics, University of Cambridge.
  5. Amador, Francisco Javier & González, Rosa Marina & Ramos-Real, Francisco Javier, 2013. "Supplier choice and WTP for electricity attributes in an emerging market: The role of perceived past experience, environmental concern and energy saving behavior," Energy Economics, Elsevier, vol. 40(C), pages 953-966.

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