| ID | 132612 |
| Title Proper | Residential outage cost estimation |
| Other Title Information | Hong Kong |
| Language | ENG |
| Author | Woo, C.K ; Ho, T ; Shiu, A ; Cheng, Y.S, Horowitz, I, Wang, J |
| Publication | 2014. |
| Summary / Abstract (Note) | Hong Kong has almost perfect electricity reliability, the result of substantial investments ultimately financed by electricity consumers who may be willing to accept lower reliability in exchange for lower bills. But consumers with high outage costs are likely to reject the reliability reduction. Our ordered-logit regression analysis of the responses by 1876 households to a telephone survey conducted in June 2013 indicates that Hong Kong residents exhibit a statistically-significant preference for their existing service reliability and rate. Moreover, the average residential cost estimate for a 1-h outage is US$45 (HK$350), topping the estimates reported in 10 of the 11 studies published in the last 10 years. The policy implication is that absent additional compelling evidence, Hong Kong should not reduce its service reliability. |
| `In' analytical Note | Energy Policy Vol.72, No. ; Sep.2014: p.204-210 |
| Journal Source | Energy Policy Vol.72, No. ; Sep.2014: p.204-210 |
| Key Words | Cost Estimation ; Hong Kong ; Residential Outage ; Electricity Reliability ; Contingent Valuation Survey ; Reliability Reduction ; Ultimately Financed ; Policy Implication ; Energy Policy ; Cost Theory ; Economic Policy |