Electricity outages in Ghana:Are contingent valuation estimates valid?

Amoah, Anthony, Ferrini, Silvia and Schaafsma, Marije (2019) Electricity outages in Ghana:Are contingent valuation estimates valid? Energy Policy, 135. ISSN 0301-4215

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Abstract

African countries experience persistent and serious energy outages, but while multiple valuation studies provide estimates of the costs of electricity outages in high-income countries, evidence is scarce for lower- and middle-income countries. The few studies that assess the value of reliable energy supply rely on the contingent valuation method that is under wide scrutiny. This paper aims to provide new estimates of households' willingness to pay to reduce electricity outages for Ghana and contributes to the debate on the validity of contingent valuation results for energy reliability. Our results suggest that households are willing to pay GHS 67 ($17) per month for reliable electricity supply, equivalent to 7% of respondents’ income. The results of tests for hypothetical bias, WTP-WTA disparity and income effects suggest that the contingent valuation estimates from this study are robust and can support decision makers in prioritizing energy policies and investments.

Item Type: Article
Uncontrolled Keywords: contingent valuation,electricity supply,ghana,hypothetical bias,validity,wta-wtp gap,energy(all),management, monitoring, policy and law ,/dk/atira/pure/subjectarea/asjc/2100
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Depositing User: LivePure Connector
Date Deposited: 18 Oct 2019 15:30
Last Modified: 11 Jun 2020 01:17
URI: https://ueaeprints.uea.ac.uk/id/eprint/72713
DOI: 10.1016/j.enpol.2019.110996

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