Der Wert von Versorgungssicherheit mit Strom: Evidenz für deutsche Haushalte
Based on a survey among more than 5,000 German household heads, this article investigates their willingness to pay (WTP) for avoiding power out-ages. Alternatively, we ask for their willingness to accept (WTA) compensations if power outages cannot be avoided. In perfect accord with numerous empirical studies, we find a WTA-WTP gap: WTA bids are, on average, substantially higher than WTP bids for avoiding an unexpected power outage of four hours. We believe that this discrepancy is based on the tendency that, for strategic reasons, respondents' WTA bids exceed actual values, whereas their WTP bids tend to be understated.
Frondel, M. and S. Sommer (2017), Der Wert von Versorgungssicherheit mit Strom: Evidenz für deutsche Haushalte. Zeitschrift für Wirtschaftspolitik, 66, 3, 294–317