Title :
Estimation of power interruption cost using causality model for industrial sector in Iran
Author :
Ziaee, Omid ; Kian, Ashkan Rahimi ; Moghadam, Mohsen Parsa
Author_Institution :
Univ. of Tehran, Tehran, Iran
Abstract :
In this paper, we develop a causal model to measure expected electricity outage costs in the industrial sector. Here, two popular econometric techniques, namely, unit root test and cointegration model was derived for modeling the production function. Cointegration was established between output (here sales value) and, respectively, electrical energy consumption, labors, and raw materials worth. Then by estimating the marginal energy production, outage cost is estimated. The model is applied to two industrial branches in Iran.
Keywords :
costing; electric power generation; power consumption; power distribution; power markets; power system economics; Iran; causality model; cointegration model; econometric techniques; electrical energy consumption; electricity outage costs; industrial sector; marginal energy production; power interruption cost; unit root test; Cost function; Econometrics; Electric variables measurement; Electrical products industry; Energy consumption; Macroeconomics; Marketing and sales; Production; Productivity; Raw materials; cointegration; outage cost; production function; unit root test;
Conference_Titel :
Power & Energy Society General Meeting, 2009. PES '09. IEEE
Conference_Location :
Calgary, AB
Print_ISBN :
978-1-4244-4241-6
DOI :
10.1109/PES.2009.5275919
