Households’ willingness to pay for undergrounding electricity and telecommunications wires
Date
2010
Authors
McNair, Benjamin
Bennett, Jeff
Hensher, David
Journal Title
Journal ISSN
Volume Title
Publisher
Canberra, ACT: Environmental Management and Development Programme, Asia Pacific School of Economics and Government, Australian National University
Abstract
Underground telecommunications and low-voltage electricity networks have
several advantages over overhead networks including reliability of supply, safety and
improved visual amenity. The economic viability of replacing existing overhead networks
with new underground networks depends on the value of these benefits to households, but
no complete value estimates are available in the literature. This paper represents a
contribution towards addressing this research gap. A stated choice survey is used to
estimate willingness-to-pay for undergrounding in established residential areas in
Canberra. Average willingness-to-pay is at least $6,838 per household and there is
significant variation in preferences over the population. The results suggest that benefits
would be highest in areas with higher household income and older residents where visual amenity, safety, tree trimming or restrictions on the use of yard space are of concern.
Description
Keywords
stated preference, willingness-to-pay, undergrounding, supply reliability
Citation
McNair, B.J., Bennett, J. & Hensher, D.A. (2010). Households’ willingness to pay for undergrounding electricity and telecommunications wires. Environmental Management & Development Occasional Paper 15. Canberra, ACT: Crawford School of Economics and Government, The Australian National University.
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Working/Technical Paper
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Open Access
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Restricted until
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