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Abstract

  • Our results suggest that consumers would transfer some of the inherent risks of a blackout to the utility for a price lower than their willingness to pay to achieve their desired level of protection, creating economic value.
  • The purchase of insurance would help most consumers avoid a complete loss of power. Our simulations show that of those households that would otherwise experience a complete loss of power, on average between 1% and 15% can fully cover their excess energy needs through insurance. Between 50% and 70% of these households are budget constrained but would still be able to partially cover their excess energy needs.

Authors

Rolando Fuentes

Rolando Fuentes

Research Fellow Dr. Rolando Fuentes is a research fellow focusing on business and regulatory models for the Utilities of the Future project.…

Expertise

  • Electricity reform
  • climate change
  • and energy policy and renewables

Publications See all Rolando Fuentes’s publications

How does Saudi Arabia’s recent energy performance compare with other G20 countries?

How does Saudi Arabia’s recent energy performance compare with other G20 countries?

Our results suggest that consumers would transfer some of the inherent risks of a blackout…

August 20, 2019
Using Insurance to Manage Reliability in the Distributed Electricity Sector: Insights From an Agent-Based Model

Using Insurance to Manage Reliability in the Distributed Electricity Sector: Insights From an Agent-Based Model

Our results suggest that consumers would transfer some of the inherent risks of a blackout…

July 21, 2019
AS

Abhijit Sengupta

Abhijit Sengupta is a Senior Lecturer in Innovation and Entrepreneurship at the University of Kent’s Business School. He holds a Ph.D.…

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