Oseni, MO;
(2017)
Self-Generation and Households' Willingness to Pay for Reliable Electricity Service in Nigeria.
The Energy Journal
, 38
(4)
pp. 165-194.
10.5547/01956574.38.4.mose.
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Abstract
Many households in developing countries often engage in self-generation to mitigate the impacts of poor public electricity provision. What is less well known, however, is whether (and how) self-generation influences households' willingness to pay (WTP) for service reliability. Using data collected from a sample of Nigerian households, the results reveal that engagement in self-generation is positively correlated with WTP for reliability. This is despite the fact that self-generation reduces the negative welfare impact of unreliability. Further analyses, however, show that backup households' decisions to pay a higher amount than non-backup households are influenced by the costs of self-generation: an increase of N1 (US$0.006) in self-generation's fuel cost per-hour is associated with WTP about N5.22 (US$0.032) more in the monthly bill. However, households' WTP US$0.15-0.16/kWh of improved reliability is smaller than the marginal costs of reliability from self-generation - US$0.27-0.41/kWh. We conclude by discussing the policy implications of our findings.
Type: | Article |
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Title: | Self-Generation and Households' Willingness to Pay for Reliable Electricity Service in Nigeria |
Open access status: | An open access version is available from UCL Discovery |
DOI: | 10.5547/01956574.38.4.mose |
Publisher version: | http://dx.doi.org/10.5547/01956574.38.4.mose |
Language: | English |
Additional information: | This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions. |
Keywords: | Self-generation, Matching method, Willingness to pay, Contingent valuation, Households, Nigeria |
UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL BEAMS UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment |
URI: | https://discovery.ucl.ac.uk/id/eprint/1508292 |
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