IDEAS home Printed from https://ideas.repec.org/a/sae/enejou/v18y1997i2p39-61.html
   My bibliography  Save this article

The Cost of Power Outages in the Business and Public Sectors in Israel: Revealed Preference vs. Subjective Valuation

Author

Listed:
  • Michael Beenstock
  • Ephraim Goldin
  • Yoel Haitovsky

Abstract

Cross-section data on investment in back-up generators and uninterruptable power supplies (UPS) are used to infer the implied cost of electricity outages in the business and public sectors in Israel. Two-limit tobit models of the demand for back-up are estimated and used to simulate the mitigated and unmitigated cost of power outages. These "revealed preference estimates of outage costs are then compared with estimates based on the method of subjective evaluation.

Suggested Citation

  • Michael Beenstock & Ephraim Goldin & Yoel Haitovsky, 1997. "The Cost of Power Outages in the Business and Public Sectors in Israel: Revealed Preference vs. Subjective Valuation," The Energy Journal, , vol. 18(2), pages 39-61, April.
    • Handle: RePEc:sae:enejou:v:18:y:1997:i:2:p:39-61
    DOI: 10.5547/ISSN0195-6574-EJ-Vol18-No2-3
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.5547/ISSN0195-6574-EJ-Vol18-No2-3
    Download Restriction: no
    File URL: https://libkey.io/10.5547/ISSN0195-6574-EJ-Vol18-No2-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Mohan Munasinghe & Mark Gellerson, 1979. "Economic Criteria for Optimizing Power System Reliability Levels," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 353-365, Spring.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Brown, David B. & Muehlenbachs, Lucija, 2023. "The Value of Electricity Reliability: Evidence from Battery Adoption," RFF Working Paper Series 23-10, Resources for the Future.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Forte, Vincent J. & Putnam, Robert & Pupp, Roger L. & Woo, Chi-Keung, 1995. "Using customer outage costs in electricity reliability planning," Energy, Elsevier, vol. 20(2), pages 81-87.
    2. Majid Hashemi & Glenn Jenkins, 2021. "The Economic Benefits of Mitigating the Risk of Unplanned Power Outages," Working Paper 1468, Economics Department, Queen's University.
    3. Mohamed Gaha & Bilal Chabane & Dragan Komljenovic & Alain Côté & Claude Hébert & Olivier Blancke & Atieh Delavari & Georges Abdul-Nour, 2021. "Global Methodology for Electrical Utilities Maintenance Assessment Based on Risk-Informed Decision Making," Sustainability, MDPI, vol. 13(16), pages 1-23, August.
    4. de Nooij, Michiel & Lieshout, Rogier & Koopmans, Carl, 2009. "Optimal blackouts: Empirical results on reducing the social cost of electricity outages through efficient regional rationing," Energy Economics, Elsevier, vol. 31(3), pages 342-347, May.
    5. Wolf, André & Wenzel, Lars, 2016. "Regional diversity in the costs of electricity outages: Results for German counties," Utilities Policy, Elsevier, vol. 43(PB), pages 195-205.
    6. Mohan Munasinghe, 1990. "Water supply policies and issues in developing countries," Natural Resources Forum, Blackwell Publishing, vol. 14(1), pages 33-48, February.
    7. Greg Ball & Debra Lloyd-Zanetti & Brian Horii & Dan Birch & Robert E. Ricks & Holly Lively, 1997. "Integrated Local Transmission and Distribution Planning Using Customer Outage Costs," The Energy Journal, , vol. 18(1_suppl), pages 137-160, June.
    8. Mark W. Gellerson & Shawna P. Grosskopf, 1980. "Public Utility Pricing, Investment, and Reliability under Uncertainty: A Review," Public Finance Review, , vol. 8(4), pages 477-492, October.
    9. Ramesh Bhatia, 1987. "Energy Demand Analysis in Developing Countries: A Review," The Energy Journal, , vol. 8(1_suppl), pages 1-33, June.
    10. Londero, Elio, 1987. "Benefits and Beneficiaries: An Introduction to Estimating Distributional Effects in Cost-Benefit Analysis (Second Edition)," MPRA Paper 60345, University Library of Munich, Germany, revised 1996.
    11. Serra, Pablo & Fierro, Gabriel, 1997. "Outage costs in Chilean industry," Energy Economics, Elsevier, vol. 19(4), pages 417-434, October.
    12. Luise Röpke, 2015. "Essays on the Integration of New Energy Sources into Existing Energy Systems," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 58.
    13. Musiliu 0. Oseni & Michael G. Pollitt, 2013. "The Economic Costs of Unsupplied Electricty: Evidence from Backup Generation among African Firms," Cambridge Working Papers in Economics 1351, Faculty of Economics, University of Cambridge.
    14. Botelho, Vinícius, 2019. "Estimating the economic impacts of power supply interruptions," Energy Economics, Elsevier, vol. 80(C), pages 983-994.
    15. Wolf, André & Wenzel, Lars, 2015. "Welfare implications of power rationing: An application to Germany," Energy, Elsevier, vol. 84(C), pages 53-62.
    16. de Nooij, Michiel & Baarsma, Barbara & Bloemhof, Gabriël & Slootweg, Han & Dijk, Harold, 2010. "Development and application of a cost-benefit framework for energy reliability: Using probabilistic methods in network planning and regulation to enhance social welfare: The N-1 rule," Energy Economics, Elsevier, vol. 32(6), pages 1277-1282, November.
    17. M. Munasinghe & A. Sanghvi, 1988. "Reliability of Electricity Supply, Outage Costs and Value of Service: An Overview," The Energy Journal, , vol. 9(2_suppl), pages 1-18, December.
    18. Patrik Söderholm, 1999. "The political economy of power generation in Zimbabwe since 1980," Natural Resources Forum, Blackwell Publishing, vol. 23(4), pages 335-346, November.
    19. Woo, Chi-Keung & Pupp, Roger L., 1992. "Costs of service disruptions to electricity consumers," Energy, Elsevier, vol. 17(2), pages 109-126.
    20. Röpke, Luise, 2013. "The development of renewable energies and supply security: A trade-off analysis," Energy Policy, Elsevier, vol. 61(C), pages 1011-1021.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:enejou:v:18:y:1997:i:2:p:39-61. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.