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Estimating the willingness to pay for a reliable electricity supply in the Turkish Republic of Northern Cyprus

Ozbafli, Aygul (2012)
Ph.D. thesis, University of Birmingham.

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Abstract

This dissertation estimates households’ willingness to pay (WTP) for an improved electricity service in North Cyprus. Stated WTP is estimated using choice experiments (CE), contingent valuation methods (CVM), and approximated using the averting expenditure (AE) method. These estimates rely on data collected from 350 in-person interviews conducted during the period August 5-22, 2008. Using the Tobit model, an average household’s averting expenditures are estimated to be 3.13 YTL/month. In the CVM section, the spike model with varying spike, varying mean, and constant standard error specification results in a median WTP of 23.03 YTL per month and a mean WTP of 29.14 YTL per month. Using CE, compensating variation estimates for eliminating summer and winter outages are calculated using parameter estimates from the mixed logit (ML) model with interactions. The compensating variation is 6.65 YTL per month and 25.83 YTL per month respectively. Among the three valuation methodologies, WTP per hour unserved ranges from 0.13 YTL (0.11 USD) to 1.22 YTL (1.03 USD). In order to avoid the cost of outages, households are willing to incur a 1.5%-13.5% increase in their monthly electricity bill.

Type of Work:Ph.D. thesis.
Supervisor(s):Maddison, David and Green, Richard
School/Faculty:Colleges (2008 onwards) > College of Social Sciences
Department:Department of Economics
Subjects:HB Economic Theory
HC Economic History and Conditions
HD Industries. Land use. Labor
Institution:University of Birmingham
ID Code:3265
This unpublished thesis/dissertation is copyright of the author and/or third parties. The intellectual property rights of the author or third parties in respect of this work are as defined by The Copyright Designs and Patents Act 1988 or as modified by any successor legislation. Any use made of information contained in this thesis/dissertation must be in accordance with that legislation and must be properly acknowledged. Further distribution or reproduction in any format is prohibited without the permission of the copyright holder.
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