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Linking the value of energy reliability to the acceptance of energy infrastructure: Evidence from the EU

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  • Cohen, Jed J.
  • Moeltner, Klaus
  • Reichl, Johannes
  • Schmidthaler, Michael

Abstract

Existing studies on the acceptability of energy-related infrastructure have centered around how to overcome the Not-In-My-Backyard phenomenon amongst local stakeholders, focusing primarily on drivers such as community participation and direct economic benefits to impacted areas. To date, none of these contributions have related the acceptability question to the value of power reliability to the same stakeholders. We fill this gap by combining an analysis of outage vulnerability with an examination of infrastructure acceptability using a unique data set from 15 EU countries with household-level information on both aspects of power provision. We find only limited evidence of a positive relationship between local residents’ sensitivity to outages and their acceptability of new energy infrastructure projects. This stresses the importance of creating awareness amongst stakeholders on how planned infrastructure expansions relate to energy security for their own household.

Suggested Citation

  • Cohen, Jed J. & Moeltner, Klaus & Reichl, Johannes & Schmidthaler, Michael, 2016. "Linking the value of energy reliability to the acceptance of energy infrastructure: Evidence from the EU," Resource and Energy Economics, Elsevier, vol. 45(C), pages 124-143.
    • Handle: RePEc:eee:resene:v:45:y:2016:i:c:p:124-143
    DOI: 10.1016/j.reseneeco.2016.06.003
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    19. Mian Yang & Ruofan He & Panbing Wan, 2024. "The transfer of provincial officials and electricity transactions in China," Public Choice, Springer, vol. 198(3), pages 377-402, March.
    20. Lambert, Dayton M. & Ripberger, Joseph T. & Jenkins-Smith, Hank & Silva, Carol L. & Bowman, Warigia & Long, Michael A. & Gupta, Kuhika & Fox, Andrew, 2024. "Consumer willingness-to-pay for a resilient electrical grid," Energy Economics, Elsevier, vol. 131(C).
    21. Motz, Alessandra, 2021. "Security of supply and the energy transition: The households' perspective investigated through a discrete choice model with latent classes," Energy Economics, Elsevier, vol. 97(C).
    22. Cohen, Jed J. & Azarova, Valeriya & Kollmann, Andrea & Reichl, Johannes, 2021. "Preferences for community renewable energy investments in Europe," Energy Economics, Elsevier, vol. 100(C).
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    24. Jin, Taeyoung & Lee, Tae Eui & Kim, Dowon, 2023. "Value of lost load estimation for the South Korea's manufacturing sector—finding the gap between the supply and demand side," Renewable and Sustainable Energy Reviews, Elsevier, vol. 187(C).

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