How experiencing extreme climate change events can impact people's willingness to pay during a power outage: a case study from the Ottawa, ON 2022 derecho Journal Articles uri icon

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abstract

  • This study addresses critical gaps by evaluating willingness to pay (WTP) in Canada, the factors influencing it, and its application in averting future power outages stemming from extreme weather events. A comprehensive survey was conducted, polling 403 Ottawa residents regarding their experiences, impacts, and WTP concerning the May 2022 derecho weather and consequent power disruptions. The findings reveal a notable disparity in WTP between individuals enduring extended power outages (exceeding 4 days) and increased experienced costs. Results from a linear regression analysis show that upgrades for increased home resilience to power outages cost $590–$990/m2 more than a homeowner would be willing to pay. These results offer valuable insights for various stakeholders, aiding in projecting WTP and discerning investment thresholds for cost-effective and attainable resilience solutions, thereby facilitating the resilience enhancement process.