The economic benefits of mitigating the risk of unplanned power outages

Arbeitspapier

This paper takes on a novel perspective to the overloading of distribution substations by considering the common-pool characteristics of electric infrastructure capacity. Using firmand substation-level data from a sample of Nepalese firms, the results provide evidence of common-pool resource (CPR) problems across substations' ownership boundaries: firms with captive substations experience fewer and shorter unplanned outages than firms connected to shared substations. Based on these findings, private investments in captive substations emerge as a coping mechanism against unreliable electricity supply. Lastly, an appraisal framework for such investments is developed and used to quantify the economic benefits to Nepal's economy.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Queen’s Economics Department Working Paper ; No. 1468

Classification and Topics

• Classification: Wirtschaft ; Energy: Demand and Supply; Prices ; Allocative Efficiency; Cost-Benefit Analysis ; Legal Monopolies and Regulation or Deregulation
• Subject: Opportunity cost of power outages ; electricity reliability ; common-pool resource ; electricity

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hashemi, Majid ; Jenkins, Glenn P.
• Event: Veröffentlichung
• (who): Queen's University, Department of Economics
• (where): Kingston (Ontario)
• (when): 2021

Further information

• Handle: http://hdl.handle.net/10419/247209
• Last update: 10.03.2025, 11:44 AM CET