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Estimating what US residential customers are willing to pay for resilience to large electricity outages of long duration

Author

Listed:
  • Sunhee Baik

    (Carnegie Mellon University)

  • Alexander L. Davis

    (Carnegie Mellon University)

  • Jun Woo Park

    (Carnegie Mellon University)

  • Selin Sirinterlikci

    (General Motors)

  • M. Granger Morgan

    (Carnegie Mellon University)

Abstract

Climate-induced extreme weather events, as well as other natural and human-caused disasters, have the potential to increase the duration and frequency of large power outages. Resilience, in the form of supplying a small amount of power to homes and communities, can mitigate outage consequences by sustaining critical electricity-dependent services. Public decisions about investing in resilience depend, in part, on how much residential customers value those critical services. Here we develop a method to estimate residential willingness-to-pay for back-up electricity services in the event of a large 10-day blackout during very cold winter weather, and then survey a sample of 483 residential customers across northeast USA using that method. Respondents were willing to pay US$1.7–2.3 kWh–1 to sustain private demands and US$19–29 day–1 to support their communities. Previous experience with long-duration outages and the framing of the cause of the outage (natural or human-caused) did not affect willingness-to-pay.

Suggested Citation

  • Sunhee Baik & Alexander L. Davis & Jun Woo Park & Selin Sirinterlikci & M. Granger Morgan, 2020. "Estimating what US residential customers are willing to pay for resilience to large electricity outages of long duration," Nature Energy, Nature, vol. 5(3), pages 250-258, March.
    • Handle: RePEc:nat:natene:v:5:y:2020:i:3:d:10.1038_s41560-020-0581-1
    DOI: 10.1038/s41560-020-0581-1
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    Cited by:

    1. Jamil, Faisal & Islam, Tanweer Ul, 2023. "Outage-induced power backup choice in Pakistan," Utilities Policy, Elsevier, vol. 82(C).
    2. Ziyi Wang & Zengqiao Chen & Cuiping Ma & Ronald Wennersten & Qie Sun, 2022. "Nationwide Evaluation of Urban Energy System Resilience in China Using a Comprehensive Index Method," Sustainability, MDPI, vol. 14(4), pages 1-36, February.
    3. Gorman, Will & Barbose, Galen & Pablo Carvallo, Juan & Baik, Sunhee & Miller, Chandler & White, Philip & Praprost, Marlena, 2023. "County-level assessment of behind-the-meter solar and storage to mitigate long duration power interruptions for residential customers," Applied Energy, Elsevier, vol. 342(C).

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