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The research objective is to estimate consumer willingness to pay (WTP) for electricity grid fortification. Data are from a representative survey of Oklahoma citizens. Extreme weather events, aging utility infrastructure, increased demand for affordable energy, and terrorism threaten the safety and security of the way most citizens access electricity. This study is a first look at public willingness to support energy grid security measures in the United States Southern Great Plains. Findings suggest that consumers would pay an additional 14.69 in monthly utility bills for a fortified grid. This WTP estimate is close to a recent energy bill hike of 14 initiated by local electricity providers. The findings provide policymakers and energy providers with information on consumer willingness to support efforts to modernize the current grid.
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Watts at stake: Concern and willingness-to-pay for electrical grid improvements in the United States
Utilizing a random sample of Oklahoma, USA residents, this paper examines the factors that are 1) associated with concern for the current state of the electrical grid in Oklahoma, and 2) associated with willingness-to-pay (WTP) for electrical grid improvements in the state. We develop a conceptual model using a risk perception framework and based on previous literature to hypothesize which variables should be related to our dependent variables (concern for the electrical grid, and WTP for improvements to the grid). We then test our conceptual model using a structural equation model (SEM). The results suggest that respondents who hold higher perceptions of weather-related risks and perceive more risks from electrical outages had greater concern for electricity infrastructure. Additionally, respondents who expressed less trust in those charged with electrical grid maintenance reported more concern for electricity infrastructure. The results for our second research question suggest that lower cost, respondents who were more politically liberal, non-white, trust grid maintenance, perceived risks of electrical outages and have concerns for the electrical grid infrastructure were all related to WTP for electrical grid improvements. We conclude the paper with implications of our findings and some brief recommendations for electrical grid concern and WTP for modernization.
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- Award ID(s):
- 1946093
- PAR ID:
- 10495353
- Publisher / Repository:
- ELSEVIER
- Date Published:
- Journal Name:
- Energy Research & Social Science
- Volume:
- 102
- Issue:
- C
- ISSN:
- 2214-6296
- Page Range / eLocation ID:
- 103179
- Format(s):
- Medium: X
- Sponsoring Org:
- National Science Foundation
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- Free Publicly Accessible Full Text
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Accepted Manuscript1.0
- Journal Article:
- https://doi.org/10.1016/j.erss.2023.103179
