Regional diversity in the costs of electricity outages: Results for German counties
The aim of this study is to quantify the macroeconomic costs resulting from a one hour power outage at the level of German counties. This is done by combining public data from various sources based on a well-established methodology, which both accounts for production losses of firms and losses in well-being of consumers. As a main result, we identify a North-South divide in the vulnerability of German counties, with counties in southern Germany tending to face larger losses. At the same time, considerable heterogeneity can also be found in small-scale comparisons, confirming the need for a spatially disaggregated analysis. We discuss the implications of our results for the debate on network expansion in Germany, suggesting that a stronger focus on outage costs could represent an important step towards a real cost-benefit analysis of expansion projects.
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