The effect of power outages and cheap talk on willingness to pay to reduce outages

Research output: Contribution to journalArticle


Using an open-ended contingent valuation survey, we analyze how (i) experience of a power outage due to one of the worst storms ever to hit Sweden and (ii) a cheap talk script affect respondents' WTP to avoid power outages. Experience significantly increases and a cheap talk script significantly decreases the proportion of respondents with zero WTP, and as a result stated WTP is lower with experience and the cheap talk script. The paper concludes with a discussion on the use of valuation studies shortly after the occurrence of an undesirable event. (C) 2011 Published by Elsevier B.V.


  • F Carlsson
  • P Martinsson
  • A Akay
Research areas and keywords

Subject classification (UKÄ) – MANDATORY

  • Earth and Related Environmental Sciences


  • Contingent valuation, Cheap talk, Experience, Power outages
Original languageEnglish
Pages (from-to)790-798
JournalEnergy Economics
Issue number5
Publication statusPublished - 2011
Publication categoryResearch
Externally publishedYes