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El costo de la falla residencial en Chile: una estimación usando la curva de demanda

Author

Listed:
  • José Miguel Benavente

    () (Departamento de Economía, Universidad de Chile)

  • Alexander Galetovic

    () (Facultad de Ciencias Económicas y Empresariales, Universidad de los Andes)

  • Ricardo Sanhueza

    () (Facultad de Ciencias Económicas y Empresariales, Universidad de los Andes)

  • Pablo Serra

    () (Departamento de Ingeniería Industrial, Universidad de Chile)

Abstract

This paper estimates the residential outage cost in Chile’s Central Interconnected System (SIC), using consumer’s willingness to pay for energy. We first estimate the cost of reducing energy consumption efficiently, that is only the less valuable kWh (as indicated by the market demand curve) are rationed. Then we estimate the per-kWh cost of rationing by cutting off service. We find that the outage cost varies considerably depending on the length of the rationing period; and on how energy is rationed. Longer restrictions allow users to adjust more, and hence are cheaper. Similarly, we estimate that rationing efficiently is between two and six times cheaper than rationing by cutting off service

Suggested Citation

  • José Miguel Benavente & Alexander Galetovic & Ricardo Sanhueza & Pablo Serra, 2005. "El costo de la falla residencial en Chile: una estimación usando la curva de demanda," Revista de Analisis Economico – Economic Analysis Review, Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines, vol. 20(2), pages 23-40, December.
  • Handle: RePEc:ila:anaeco:v:20:y:2005:i:2:p:23-40
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    References listed on IDEAS

    as
    1. Sanghvi, Arun P., 1983. "Optimal electricity supply reliability using customer shortage costs," Energy Economics, Elsevier, vol. 5(2), pages 129-136, April.
    2. José Miguel Benavente & Alexander Galetovic & Ricardo Sanhueza & Pablo Serra, 2005. "Estimando la Demanda Residencial por Electricidad en Chile: El Consumo es Sensible al Precio," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 42(125), pages 31-61.
    3. Gabriel Fierro & Pablo Serra, 1993. "Un Modelo de Estimación del Costo de Falla: el Caso de Chile," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 30(90), pages 247-260.
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    Citations

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    Cited by:

    1. Claudio Agostini & Cecilia Plottier & Eduardo Saavedra, 2009. "La Demanda Residencial por Energía Eléctrica en Chile," ILADES-Georgetown University Working Papers inv240, Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines.
    2. Galetovic, Alexander & Muñoz, Cristián M., 2011. "Regulated electricity retailing in Chile," Energy Policy, Elsevier, vol. 39(10), pages 6453-6465, October.
    3. Claudio Agostini & M. Cecilia Plottier & Eduardo Saavedra, 2012. "Residential Demand for Electric Energy in Chile," Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 15(3), pages 64-83, December.

    More about this item

    Keywords

    Chile; Demand; Duality; Elasticity; Energy; Rationing;

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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