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.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +49 (0)40 34 05 76 - 0
Fax: +49 (0)40 34 05 76 - 776
Web page: http://www.hwwi.org/en/
More information through EDIRC
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.:
- Beenstock, Michael & Goldin, Ephraim & Haitovsky, Yoel, 1998. "Response bias in a conjoint analysis of power outages," Energy Economics, Elsevier, vol. 20(2), pages 135-156, April.
- Pedro Linares & Luis Rey, 2012.
"The costs of electricity interruptions in Spain. Are we sending the right signals?,"
fa05-2012, Economics for Energy.
- Linares, Pedro & Rey, Luis, 2013. "The costs of electricity interruptions in Spain. Are we sending the right signals?," Energy Policy, Elsevier, vol. 61(C), pages 751-760.
- Carlsson, Fredrik & Martinsson, Peter, 2004.
"Does it Matter When a Power Outage Occurs? - A Choice Experiment Study on the Willingness to Pay to Avoid Power Outages,"
Working Papers in Economics
155, University of Gothenburg, Department of Economics.
- Carlsson, Fredrik & Martinsson, Peter, 2008. "Does it matter when a power outage occurs? -- A choice experiment study on the willingness to pay to avoid power outages," Energy Economics, Elsevier, vol. 30(3), pages 1232-1245, May.
- Serra, Pablo & Fierro, Gabriel, 1997.
"Outage costs in Chilean industry,"
Elsevier, vol. 19(4), pages 417-434, October.
- Leahy, Eimear & Tol, Richard S. J., 2010.
"An Estimate of the Value of Lost Load for Ireland,"
WP357, Economic and Social Research Institute (ESRI).
- Beenstock, Michael, 1991. "Generators and the cost of electricity outages," Energy Economics, Elsevier, vol. 13(4), pages 283-289, October.
- Leslie E. Papke & Jeffrey M. Wooldridge, 1993.
"Econometric Methods for Fractional Response Variables with an Application to 401(k) Plan Participation Rates,"
NBER Technical Working Papers
0147, National Bureau of Economic Research, Inc.
- Papke, Leslie E & Wooldridge, Jeffrey M, 1996. "Econometric Methods for Fractional Response Variables with an Application to 401(K) Plan Participation Rates," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(6), pages 619-32, Nov.-Dec..
- 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.
- Benjamin Bental & S. Abraham Ravid, 1982. "A Simple Method for Evaluating the Marginal Cost of Unsupplied Electricity," Bell Journal of Economics, The RAND Corporation, vol. 13(1), pages 249-253, Spring.
- Wenzel, Lars & Wolf, André, 2013. "Protection against major catastrophes: An economic perspective," HWWI Research Papers 137, Hamburg Institute of International Economics (HWWI).
- Tishler, Asher, 1993. "Optimal production with uncertain interruptions in the supply of electricity : Estimation of electricity outage costs," European Economic Review, Elsevier, vol. 37(6), pages 1259-1274, August.
- growitsch, christian & Malischek, Raimund & Nick, Sebastian & Wetzel, Heike, 2013. "The Costs of Power Interruptions in Germany - an Assessment in the Light of the Energiewende," EWI Working Papers 2013-7, Energiewirtschaftliches Institut an der Universitaet zu Koeln.
- de Nooij, Michiel & Lieshout, Rogier & Koopmans, Carl, 2009. "Optimal blackouts: Empirical results on reducing the social cost of electricity outages through efficient regional rationing," Energy Economics, Elsevier, vol. 31(3), pages 342-347, May.
- Sanghvi, Arun P., 1982. "Economic costs of electricity supply interruptions : US and foreign experience," Energy Economics, Elsevier, vol. 4(3), pages 180-198, July.
- Michael J. Doane & Raymand S. Hartman & Chi-Keung Woo, 1988. "Household Preference for Interruptible Rate Options and the Revealed Value of Service Reliability," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 121-134.
- Reichl, Johannes & Schmidthaler, Michael & Schneider, Friedrich, 2013. "The value of supply security: The costs of power outages to Austrian households, firms and the public sector," Energy Economics, Elsevier, vol. 36(C), pages 256-261.
- Brown, Gardner, Jr & Johnson, M Bruce, 1969. "Public Utility Pricing and Output under Risk," American Economic Review, American Economic Association, vol. 59(1), pages 119-28, March.
When requesting a correction, please mention this item's handle: RePEc:zbw:hwwirp:142. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.