Choice experiment study on the willingness to pay to improve electricity services
AbstractModern 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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Energy Policy.
Volume (Year): 38 (2010)
Issue (Month): 8 (August)
Contact details of provider:
Web page: http://www.elsevier.com/locate/enpol
Power outages Willingness to pay Random parameter logit;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hanley, Nick & Mourato, Susana & Wright, Robert E, 2001. " Choice Modelling Approaches: A Superior Alternative for Environmental Valuation?," Journal of Economic Surveys, Wiley Blackwell, vol. 15(3), pages 435-62, July.
- Fosgerau, Mogens & Bierlaire, Michel, 2007.
"A practical test for the choice of mixing distribution in discrete choice models,"
Transportation Research Part B: Methodological,
Elsevier, vol. 41(7), pages 784-794, August.
- Fosgerau, Mogens & Bierlaire, Michel, 2007. "A practical test for the choice of mixing distribution in discrete choice models," MPRA Paper 42276, University Library of Munich, Germany.
- Carlsson, Fredrik & Martinsson, Peter, 2008.
"Does it matter when a power outage occurs? -- A choice experiment study on the willingness to pay to avoid power outages,"
Elsevier, vol. 30(3), pages 1232-1245, May.
- Carlsson, Fredrik & Martinsson, Peter, 2004. "Does it Matter When a Power Outage Occurs? - A Choice Experiment Study on the Willingness to Pay to Avoid Power Outages," Working Papers in Economics 155, University of Gothenburg, Department of Economics.
- Bergmann, Ariel & Hanley, Nick & Wright, Robert, 2006. "Valuing the attributes of renewable energy investments," Energy Policy, Elsevier, vol. 34(9), pages 1004-1014, June.
- Longo, Alberto & Markandya, Anil & Petrucci, Marta, 2008.
"The internalization of externalities in the production of electricity: Willingness to pay for the attributes of a policy for renewable energy,"
Elsevier, vol. 67(1), pages 140-152, August.
- Alberto Longo & Anil Markandya & Marta Petrucci, 2006. "The Internalization of Externalities in The Production of Electricity: Willingness to Pay for the Attributes of a Policy for Renewable Energy," Working Papers 2006.132, Fondazione Eni Enrico Mattei.
- Peter Martinsson, 2002.
"Using Choice Experiments for Non-Market Valuation,"
EEPSEA Special and Technical Paper
sp200205t2, Economy and Environment Program for Southeast Asia (EEPSEA), revised May 2002.
- Andrew A. Goett & Kathleen Hudson & Kenneth E. Train, 2000. "Customers' Choice Among Retail Energy Suppliers: The Willingness-to-Pay for Service Attributes," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 1-28.
- Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132.
- Hoyos, David & Mariel, Petr & Fernández-Macho, Javier, 2009.
"The influence of cultural identity on the WTP to protect natural resources: Some empirical evidence,"
Elsevier, vol. 68(8-9), pages 2372-2381, June.
- Mariel Chladkova, Petr & Hoyos Ramos, David & Fernández Macho, Francisco Javier, 2008. "The influence of cultural identity on the WTP to protect natural resources: some empirical evidence," BILTOKI 2008-03, Universidad del País Vasco - Departamento de Economía Aplicada III (Econometría y Estadística).
- An, Li & Lupi, Frank & Liu, Jianguo & Linderman, Marc A. & Huang, Jinyan, 2002. "Modeling the choice to switch from fuelwood to electricity: Implications for giant panda habitat conservation," Ecological Economics, Elsevier, vol. 42(3), pages 445-457, September.
- Roe, Brian & Teisl, Mario F. & Levy, Alan & Russell, Matthew, 2001. "US consumers' willingness to pay for green electricity," Energy Policy, Elsevier, vol. 29(11), pages 917-925, September.
- Munasinghe, Mohan, 1980. " Costs Incurred by Residential Electricity Consumers Due to Power Failures," Journal of Consumer Research, University of Chicago Press, vol. 6(4), pages 361-69, March.
- David Hensher & William Greene, 2003. "The Mixed Logit model: The state of practice," Transportation, Springer, vol. 30(2), pages 133-176, May.
- Alvarez-Farizo, Begona & Hanley, Nick, 2002. "Using conjoint analysis to quantify public preferences over the environmental impacts of wind farms. An example from Spain," Energy Policy, Elsevier, vol. 30(2), pages 107-116, January.
- Michael J. Doane & Raymand S. Hartman & Chi-Keung Woo, 1988. "Household Preference for Interruptible Rate Options and the Revealed Value of Service Reliability," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 121-134.
- K. K. Lancaster, 2010. "A New Approach to Consumer Theory," Levine's Working Paper Archive 1385, David K. Levine.
- Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470.
- Arkesteijn, Karlijn & Oerlemans, Leon, 2005. "The early adoption of green power by Dutch households: An empirical exploration of factors influencing the early adoption of green electricity for domestic purposes," Energy Policy, Elsevier, vol. 33(2), pages 183-196, January.
- Beenstock, Michael & Goldin, Ephraim & Haitovsky, Yoel, 1998. "Response bias in a conjoint analysis of power outages," Energy Economics, Elsevier, vol. 20(2), pages 135-156, April.
- Brownstone, David, 2001. "Discrete Choice Modeling for Transportation," University of California Transportation Center, Working Papers qt29v7d1pk, University of California Transportation Center.
- Mogas, Joan & Riera, Pere & Bennett, Jeff, 2006. "A comparison of contingent valuation and choice modelling with second-order interactions," Journal of Forest Economics, Elsevier, vol. 12(1), pages 5-30, March.
- 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.
- Pepermans, Guido, 2011.
"The value of continuous power supply for Flemish households,"
Elsevier, vol. 39(12), pages 7853-7864.
- Pepermans, Guido, 2010. "The Value of Continuous Power Supply for Flemish Households," Working Papers 2010/24, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
- 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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.