Abhijit Sengupta is a Senior Lecturer in Innovation and Entrepreneurship at the University of Kent’s Business School. He holds a Ph.D. in Economics from Stony Brook University in New York, an M.A. in Economics from Jawaharlal Nehru University, India and a B.Sc. in Economics from the University of Calcutta, India. He has published in top tier journals including Research Policy, British Journal of Management, Journal of Economic Dynamics and Control, and Advances in Complex Systems.
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 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.
21st July 2019