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: | , , |
|---|---|
| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2020
|
| 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 |
| id |
okr-10986-34026 |
|---|---|
| recordtype |
oai_dc |
| spelling |
okr-10986-340262022-09-20T00:12:04Z How Valuable is the Reliability of Residential Electricity Supply in Low-Income Countries? Evidence from Nepal Alberini, Anna Steinbuks, Jevgenijs Timilsina, Govinda ELECTRICITY WILLINGNESS TO PAY POWER RELIABILITY RESIDENTIAL ELECTRICITY SUPPLY POVERTY LIVING STANDARDS LOAD SHEDDING 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. 2020-07-06T16:08:36Z 2020-07-06T16:08:36Z 2020-06 Working Paper 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 English Policy Research Working Paper;No. 9311 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper South Asia Nepal |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ELECTRICITY WILLINGNESS TO PAY POWER RELIABILITY RESIDENTIAL ELECTRICITY SUPPLY POVERTY LIVING STANDARDS LOAD SHEDDING |
| spellingShingle |
ELECTRICITY WILLINGNESS TO PAY POWER RELIABILITY RESIDENTIAL ELECTRICITY SUPPLY POVERTY LIVING STANDARDS LOAD SHEDDING Alberini, Anna Steinbuks, Jevgenijs Timilsina, Govinda How Valuable is the Reliability of Residential Electricity Supply in Low-Income Countries? Evidence from Nepal |
| geographic_facet |
South Asia Nepal |
| relation |
Policy Research Working Paper;No. 9311 |
| description |
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. |
| format |
Working Paper |
| author |
Alberini, Anna Steinbuks, Jevgenijs Timilsina, Govinda |
| author_facet |
Alberini, Anna Steinbuks, Jevgenijs Timilsina, Govinda |
| author_sort |
Alberini, Anna |
| title |
How Valuable is the Reliability of Residential Electricity Supply in Low-Income Countries? Evidence from Nepal |
| title_short |
How Valuable is the Reliability of Residential Electricity Supply in Low-Income Countries? Evidence from Nepal |
| title_full |
How Valuable is the Reliability of Residential Electricity Supply in Low-Income Countries? Evidence from Nepal |
| title_fullStr |
How Valuable is the Reliability of Residential Electricity Supply in Low-Income Countries? Evidence from Nepal |
| title_full_unstemmed |
How Valuable is the Reliability of Residential Electricity Supply in Low-Income Countries? Evidence from Nepal |
| title_sort |
how valuable is the reliability of residential electricity supply in low-income countries? evidence from nepal |
| publisher |
World Bank, Washington, DC |
| publishDate |
2020 |
| url |
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 |
| _version_ |
1764480033688125440 |