Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/305619 
Year of Publication: 
2024
Series/Report no.: 
CESifo Working Paper No. 11377
Publisher: 
CESifo GmbH, Munich
Abstract: 
To avoid electric-infrastructure-induced wildfires, millions of Californians had their power cut for hours to days at a time. We show that rooftop solar-plus-battery-storage systems increased in zip codes with the longest power outages. Rooftop solar panels alone will not help a household avert outages, but a solar-plus-battery-storage system will. Using this fact, we obtain a revealed-preference estimate of the willingness to pay for electricity reliability, the Value of Lost Load, a key parameter for electricity market design. Our estimate, with an average of $4,980/MWh, suggests California’s wildfire-prevention outages resulted in losses from foregone consumption of $406 million to residential electricity consumers.
Subjects: 
batteries
reliability
averting expenditures
power outages
Value of Lost Load
JEL: 
Q40
Q54
Q58
Document Type: 
Working Paper
Appears in Collections:

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.