Households' willingness to pay for overhead-to-underground conversion of electricity distribution networks

Ben J. McNair; Jeff Bennett; David A. Hensher; John M. Rose

doi:10.1016/j.enpol.2011.02.023

Households' willingness to pay for overhead-to-underground conversion of electricity distribution networks

Ben J. McNair^*, Jeff Bennett, David A. Hensher, John M. Rose

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

18 Citations (Scopus)

Abstract

Underground low-voltage electricity networks have several advantages over overhead networks including reliability of supply, safety and improved visual amenity. The economic viability of replacing existing overhead networks with new underground networks depends on the value of these benefits to households, but no complete value estimates are available in the literature. This paper represents a contribution towards addressing this research gap. A stated choice survey is used to estimate willingness to pay for undergrounding in established residential areas in Canberra, Australia. Average willingness to pay is at least A$6838 per household and there is significant variation in preferences over the population. The results suggest that benefits would be highest in areas with higher household income and older residents where visual amenity, safety, tree trimming, or restrictions on the use of yard space are of concern.

Original language	English
Pages (from-to)	2560-2567
Number of pages	8
Journal	Energy Policy
Volume	39
Issue number	5
DOIs	https://doi.org/10.1016/j.enpol.2011.02.023
Publication status	Published - May 2011

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10.1016/j.enpol.2011.02.023

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abstract = "Underground low-voltage electricity networks have several advantages over overhead networks including reliability of supply, safety and improved visual amenity. The economic viability of replacing existing overhead networks with new underground networks depends on the value of these benefits to households, but no complete value estimates are available in the literature. This paper represents a contribution towards addressing this research gap. A stated choice survey is used to estimate willingness to pay for undergrounding in established residential areas in Canberra, Australia. Average willingness to pay is at least A$6838 per household and there is significant variation in preferences over the population. The results suggest that benefits would be highest in areas with higher household income and older residents where visual amenity, safety, tree trimming, or restrictions on the use of yard space are of concern.",

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AB - Underground low-voltage electricity networks have several advantages over overhead networks including reliability of supply, safety and improved visual amenity. The economic viability of replacing existing overhead networks with new underground networks depends on the value of these benefits to households, but no complete value estimates are available in the literature. This paper represents a contribution towards addressing this research gap. A stated choice survey is used to estimate willingness to pay for undergrounding in established residential areas in Canberra, Australia. Average willingness to pay is at least A$6838 per household and there is significant variation in preferences over the population. The results suggest that benefits would be highest in areas with higher household income and older residents where visual amenity, safety, tree trimming, or restrictions on the use of yard space are of concern.

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Households' willingness to pay for overhead-to-underground conversion of electricity distribution networks

Abstract

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