Valuing Electricity Service Attributes: A Choice Experiment Study in Madhya Pradesh, India
31 Pages Posted: 27 Nov 2012
Date Written: November 2012
Abstract
This paper presents the results of a choice experiment study undertaken to value electricity service attributes in Madhya Pradesh, India. Primary data was collected from 2,083 households using stratified random sampling method. Results show that existing service is very poor and consumers have substantial willingness to pay (WTP) for changing the status quo. Amongs the studied service attributes, hours of supply captures the highest WTP and WTP declines significantly with reduced hours of supply. However, quality, customer service, and accuracy of billing together accounts for 56% of the total WTP. Assessment of WTP with different service attribute combinations show that value of other service attributes become relatively more important when supply is less than 24 hours. Simulations show that uptake rates increase substantially when improved hours of supply is supplemented with other service attributes. Development impact of $1.2 billion worth physical infrastructure investments on Madhya Pradesh power distribution network for 24-hour supply can be significantly enhanced if quality, customer service, transparency, and accuracy of billing are also improved simultaneously.
Keywords: Unbundling Demand, Value of Electricity Service Attributes, India
JEL Classification: Q40, Q51, C93
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Cost-of-Living Adjustment Clauses in Union Contracts
By Ronald G. Ehrenberg, Leif Danziger, ...
-
Female Labor Supply and Child Care in France
By Philippe Choné, David Leblanc, ...
-
Slow to Anger and Fast to Forgive: Cooperation in an Uncertain World
By Drew Fudenberg, David G. Rand, ...
-
Enrollment and Employment Status and the Likelihood of a Teenage Non-Marital Pregnancy
By Lauren M. Rich and Sun-bin Kim
-
Empirical Evidence on the Sustainability of the IT Innovation Capability
By Jee-hae Lim, Theophanis C. Stratopoulos, ...
-
The Choice of Sustainable Housing Towards Sustainable Development: A Case Study in Malaysia
By Zuroni Jusoh, Husniyah Rahim, ...
-
A Panel Analysis of UK Industrial Company Failure
By John Hunter and Natalia Isachenkova