This study uses a contingent valuation approach to value the willingness-to-pay (WTP) for improved service experienced by households in Nepal following the end of the country's load-shedding crisis of 2008-2016. Using a detailed survey of grid-connected Nepali households, the authors calculate the WTP per outage-day avoided and the residential value of lost (VoLL) and analyze their key drivers. Households are willing to pay, on average, 123.32 NR ($1.11) per month, or 65 percent of the actual average monthly bill for improved quality of power supply. The preferred estimates of the VoLL are in the range of 5 to 15 NR/kWh (¢4.7-¢14/kWh). These estimates are below the marginal cost of avoided load shedding, and virtually the same as valuations at the beginning of the load-shedding crisis.
Detalhes
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Autor
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Data do documento
2020/06/30
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TIpo de documento
Documento de trabalho sobre pesquisa de políticas
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No. do relatório
WPS9311
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Nº do volume
1
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Total Volume(s)
1
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País
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Região
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Data de divulgação
2020/06/30
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Disclosure Status
Disclosed
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Nome do documento
How Valuable is the Reliability of Residential Electricity Supply in Low-Income Countries ? Evidence from Nepal
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Palavras-chave
Electricity; load shedding; power supply; development research group; marginal utility of income; collected information; quality of power supply; consumption; grid electricity; electricity service; power outage; rechargeable battery; Solar Home System; residential electricity; linear probability model; Access to Electricity; source of energy; average monthly bill; hours of service; national electricity grid; contingent valuation; demand function; nationally representative survey; contingent valuation method; million people; loss of data; low energy consumption; cost of electricity; power system planning; cost of capital; stated preference methods; contingent valuation study; measurement error; solar light; standard error; solar equipment
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