willingness to pay

Pricing electricty blackout among South African households

South African households, like households in many other developing countries, are faced with regular power outages. This is a big problem, since the outages that the households experience are both frequent and long in duration. Efficient electricity infrastructure investment decisions are possible only if the welfare loss of electricity blackouts is determined. We estimate a measure for welfare analysis. The surveys were conducted using electronic equipment (gadgets/tablets) instead of the orthodox paper method. We subject respondents to eight power outage scenarios.

South African attitudes about nuclear power: The case of the nuclear energy expansion

The objective of our study is to investigate households’ attitudes and willingness to pay (WTP) for the proposed second nuclear power plant in South Africa. Traditional analysis of such data has tended to ignore zero WTP values. A spike model which explicitly accounts for zero WTP is employed. We also test for effect of distance on WTP. The proximity to the nuclear plant dummy is negative and significant in the probit model, which implies that those who are closer to the plant are more likely to state a zero WTP.

Valuing User Preferences for Improvements in Public Nature Trails Around the Sundays River Estuary, Eastern Cape, South Africa

Many valuations have been made of changes to in-estuary attributes but few have been made of out-of-estuary attributes. From a recreation perspective, an important type of out-of-estuary attribute is the availability of public paths by which to access attractive features of the estuary environment. This paper values an improvement in the level of public access in the form of an additional nature trail along the banks of the Sundays River Estuary in the Eastern Cape, but does not compare this value with the costs.

Estimating the willingness to pay for the removal of a local undesirable land use: The case of the Manganese ore dump and oil tank farm in the Port Elizabeth Harbour

This paper examines the Nelson Mandela Bay public’s willingness to pay (WTP) for the removal of a local undesirable land use, the manganese ore dumps and the oil tank farm situated within the boundaries of the Port Elizabeth harbour, Eastern Cape, South Africa, by means of the contingent valuation method. Both a non-parametric and parametric estimate of the WTP is derived. Estimated WTP for the removal of this disamenity ranges from R47.09 to R93.21 per household. The aggregate WTP ranges from R13 489 683 to R26 701 496.

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