How Valuable is the Reliability of Residential Electricity Supply in Low-Income Countries? Evidence from Nepal
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...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2020
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/619261593538219342/How-Valuable-is-the-Reliability-of-Residential-Electricity-Supply-in-Low-Income-Countries-Evidence-from-Nepal http://hdl.handle.net/10986/34026 |
| Summary: | 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. |
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