Average residential outage cost estimates for the lower 48 states in the US

Chi Keung WOO, A. TISHLER, J. ZARNIKAU, Y. CHEN

Research output: Contribution to journalArticlespeer-review

Abstract

Motivated by diverse residential electricity outage cost estimates and possible hypothetical bias of contingent valuation (CV) survey data, this paper proposes a simple formula for market-based estimation of residential outage costs. Its key finding is that average residential outage cost estimates for the lower 48 states of the US range from US$0.12 to US$0.34 per kWh unserved, below the regional CV-based estimates of US$1.0 to US$4.2 per kWh unserved found by a national study. It makes three contributions to the literature of residential outage cost estimation. First, it obviates collecting and analysing CV survey data for estimating average residential outage costs. Second, its proposed formula has minimal data requirements and is applicable to any city, state, region, or country. Finally, it details the policy implications of our newly found empirics in electricity pricing, resource planning, resource procurement, electricity product differentiation, and performance-based regulation of electricity reliability. Copyright © 2021 Elsevier B.V. All rights reserved.
Original languageEnglish
Article number105270
JournalEnergy Economics
Volume98
Early online date20 Apr 2021
DOIs
Publication statusPublished - Jun 2021

Citation

Woo, C. K., Tishler, A., Zarnikau, J., & Chen, Y. (2021). Average residential outage cost estimates for the lower 48 states in the US. Energy Economics, 98. Retrieved from https://doi.org/10.1016/j.eneco.2021.105270

Keywords

  • Residential electricity outage cost
  • Market-based estimation
  • US$ per kWh unserved
  • Simple formula
  • USA

Fingerprint

Dive into the research topics of 'Average residential outage cost estimates for the lower 48 states in the US'. Together they form a unique fingerprint.