The cost of power outages in the business and public sectors in Israel: Revealed preference vs. subjective evaluation
- Hebrew Univ. of Jerusalem, Mount Scopus (Israel)
The economic cost of power outages is a central parameter in the cost-benefit analysis of electric power reliability and the design of electric power systems. The authors present a new methodology for estimating the cost of power outages in the business and public sections and illustrate with data for Israel. The methodology is based on the principle of revealed preference, the cost of an outage may be inferred from the actions taken by consumers to mitigate losses induced by unsupplied electricity. If outages impose costs on businesses, managers are likely to invest in back-up power to mitigate the losses that are incurred when electricity is not supplied. Investment in back-up generators may then be used to impute the mitigated and unmitigated damage from outages. 12 refs., 3 figs., 7 tabs.
- Sponsoring Organization:
- USDOE
- OSTI ID:
- 460068
- Journal Information:
- Energy Journal, Vol. 18, Issue 2; Other Information: PBD: 1997
- Country of Publication:
- United States
- Language:
- English
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