@article{b98c669a91cc4d489b8c12e12f38d16e,
title = "A back of the envelope estimate of the average non-residential outage cost in the US",
abstract = "Using the Envelope Theorem, this paper derives a simple formula for market-based estimation of an average non-residential outage cost. Its key finding is that the 2019 estimate for the US is about US$10 per kWh unserved, below the regional estimates of approximately US$20 to US$40 per kWh unserved previously found by a large national study that uses contingent valuation (CV) survey data. This finding's policy implication is reductions in marginal-cost-based electricity prices, an electric grid's need for transmission and generation capacity and demand response resources, a local distribution company's reliability-related investment, an independent system operator's cap for wholesale prices, and a regulator's penalty for reliability deterioration under performance-based regulation.",
keywords = "Envelope theorem, Market-Based estimation, Non-residential electricity outage cost, US$ per kWh unserved, USA",
author = "Woo, {C. K.} and A. Tishler and J. Zarnikau and Y. Chen",
note = "Publisher Copyright: {\textcopyright} 2021 Elsevier Inc.",
year = "2021",
month = may,
doi = "10.1016/j.tej.2021.106930",
language = "אנגלית",
volume = "34",
journal = "Electricity Journal",
issn = "1040-6190",
publisher = "Elsevier Inc.",
number = "4",
}