Abstract
Investment in back-up generators is treated as insurance against the adverse effects of power outages. A theoretical model is developed which implies that the cost of outages may be inferred from revealed preference data on expenditure on generators. The conditions for the optimal social provision of electricity reliability are discussed.
Original language | English |
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Pages (from-to) | 283-289 |
Number of pages | 7 |
Journal | Energy Economics |
Volume | 13 |
Issue number | 4 |
DOIs | |
State | Published - Oct 1991 |
Keywords
- Electricity
- Generators
- Insurance
- Power cuts
- Reliability