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Consumer willingness-to-pay for a resilient electrical grid

Author

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  • Lambert, Dayton M.
  • Ripberger, Joseph T.
  • Jenkins-Smith, Hank
  • Silva, Carol L.
  • Bowman, Warigia
  • Long, Michael A.
  • Gupta, Kuhika
  • Fox, Andrew

Abstract

The research objective is to estimate consumer willingness to pay (WTP) for electricity grid fortification. Data are from a representative survey of Oklahoma citizens. Extreme weather events, aging utility infrastructure, increased demand for affordable energy, and terrorism threaten the safety and security of the way most citizens access electricity. This study is a first look at public willingness to support energy grid security measures in the United States Southern Great Plains. Findings suggest that consumers would pay an additional $14.69 in monthly utility bills for a fortified grid. This WTP estimate is close to a recent energy bill hike of $14 initiated by local electricity providers. The findings provide policymakers and energy providers with information on consumer willingness to support efforts to modernize the current grid.

Suggested Citation

  • Lambert, Dayton M. & Ripberger, Joseph T. & Jenkins-Smith, Hank & Silva, Carol L. & Bowman, Warigia & Long, Michael A. & Gupta, Kuhika & Fox, Andrew, 2024. "Consumer willingness-to-pay for a resilient electrical grid," Energy Economics, Elsevier, vol. 131(C).
    • Handle: RePEc:eee:eneeco:v:131:y:2024:i:c:s0140988324000537
    DOI: 10.1016/j.eneco.2024.107345
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    Cited by:

    1. Xu, Shuling & Yang, Zihan & Deng, Nana & Wang, Bo, 2024. "Residents' willingness to be compensated for power rationing during peak hours based on choice experiment," Applied Energy, Elsevier, vol. 367(C).

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    More about this item

    Keywords

    Willingness-to-pay; Electricity; Grid; Ordered probit; Sample selection;
    All these keywords.

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • H4 - Public Economics - - Publicly Provided Goods

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