Evaluating households’ preferences regarding reducing power outages in rural areas: cases in the Ganges Floodplain in Bangladesh

Abstract

This paper investigates household preferences regarding an improved supply of electricity in rural Bangladesh, where the expansion of stable electricity is an urgent policy issue. The paper examines household preferences regarding reductions in the frequency and duration of power outages. It also examines prior notification mechanisms that do not necessarily provide an increased supply of electricity but that allow households to prepare for potential power failures. A questionnaire survey designed as a choice experiment was applied to households to elicit preferences. The econometric analysis reveals that villagers prefer a reduction in both the frequency and duration of power outages and a 1-day prior notification of power outages. There are slight disparities in preferences according to the season and the timing of improvements (e.g., summer or winter and all day or peak hours). Thus, the present study may be beneficial for policymakers when considering the provision of electricity supply improvements in rural areas in exchange for slight increases in electricity tariffs.