The value of supply security: The costs of power outages to Austrian households, firms and the public sector
This paper presents a model for assessing economic losses caused by electricity cuts as well as Willingness-to-Pay to avoid these power outages as an approximation to the value of supply security. The economic effects for simulated power cuts from 1 to 48h, which take the affected provinces, the day of the week and the time of day into consideration, can be calculated using the assessment tool APOSTEL. The costs due to power cuts are computed separately for all sectors of the economy and for households. The average value of lost load for Austrian households and non-household consumers in the case of a power cut of 1h on a summer workday morning was calculated to be 17.1€ per kWh of electricity not supplied.
If 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.
References listed on IDEAS
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.:
- Johannes Reichl & Sylvia Frühwirth-Schnatter, 2012. "A censored random coefficients model for the detection of zero willingness to pay," Quantitative Marketing and Economics (QME), Springer, vol. 10(2), pages 259-281, June.
- de Nooij, Michiel & Koopmans, Carl & Bijvoet, Carlijn, 2007. "The value of supply security: The costs of power interruptions: Economic input for damage reduction and investment in networks," Energy Economics, Elsevier, vol. 29(2), pages 277-295, March.
- Reichl, Johannes & Kollmann, Andrea & Tichler, Robert & Schneider, Friedrich, 2008. "The importance of incorporating reliability of supply criteria in a regulatory system of electricity distribution: An empirical analysis for Austria," Energy Policy, Elsevier, vol. 36(10), pages 3862-3871, October.
- Woo, Chi-Keung & Pupp, Roger L., 1992. "Costs of service disruptions to electricity consumers," Energy, Elsevier, vol. 17(2), pages 109-126.
- Tooraj Jamasb and Michael Pollitt, 2005.
"Electricity Market Reform in the European Union: Review of Progress toward Liberalization & Integration,"
The Energy Journal,
International Association for Energy Economics, vol. 0(Special I), pages 11-42.
- Tooraj Jamasb & Michael Pollitt, 2005. "Electricity Market Reform in the European Union - Review of Progress toward Liberalization & Integration," Working Papers 0503, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
- M. Munasinghe & A. Sanghvi, 1988. "Reliability of Electricity Supply, Outage Costs and Value of Service: An Overview," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 1-18.
- Baarsma, Barbara E. & Hop, J. Peter, 2009. "Pricing power outages in the Netherlands," Energy, Elsevier, vol. 34(9), pages 1378-1386.
- Daniel McFadden, 1996. "Computing Willingness-to-Pay in Random Utility Models," Working Papers _011, University of California at Berkeley, Econometrics Laboratory Software Archive. Full references (including those not matched with items on IDEAS)