Abstract
We estimate the marginal willingness to pay (WTP) for improved electricity service reliability in a nationally representative sample 1,047 grid or mini-grid connected households in Sierra Leone, using two complementary valuation approaches. Analyzing data from a discrete choice experiment, we find that, on average, households exhibit strong preferences for shorter outages; fewer daytime and evening outages, compared to nighttime outages; and prior notification, though there is heterogeneity in the relative weights ascribed to each of these attributes. Next, in a consumer damage function analysis, we estimate that damages are higher during longduration and notified outages, particularly for daytime and evening events, compared to those occurring only at night or over multiple periods. Estimated marginal WTP for a one-hour reduction in outage duration ranges from 2.2 to 4.7 New Leones (≈USD 0.10-0.22). We integrate findings from both approaches to derive policy-relevant insights on the value of reliability investments that reflect household preferences and reduce economic losses in a context that is characterized by very low-quality power.
