Residential outage cost estimation: Hong Kong

Chi-Keung WOO*, T. Ho, A. Shiu, Yuk Shing CHENG, I. Horowitz, J. Wang

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

21 Citations (Scopus)

Abstract

Hong Kong has almost perfect electricity reliability, the result of substantial investments ultimately financed by electricity consumers who may be willing to accept lower reliability in exchange for lower bills. But consumers with high outage costs are likely to reject the reliability reduction. Our ordered-logit regression analysis of the responses by 1876 households to a telephone survey conducted in June 2013 indicates that Hong Kong residents exhibit a statistically-significant preference for their existing service reliability and rate. Moreover, the average residential cost estimate for a 1-h outage is US$45 (HK$350), topping the estimates reported in 10 of the 11 studies published in the last 10 years. The policy implication is that absent additional compelling evidence, Hong Kong should not reduce its service reliability.

Original languageEnglish
Pages (from-to)204-210
Number of pages7
JournalEnergy Policy
Volume72
DOIs
Publication statusPublished - Sep 2014

Scopus Subject Areas

  • Energy(all)
  • Management, Monitoring, Policy and Law

User-Defined Keywords

  • Contingent valuation survey
  • Electricity reliability in Hong Kong
  • Residential outage cost estimation

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