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

fYear

2009

Firstpage

1

Lastpage

5

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;

fLanguage

English

Publisher

ieee

Conference_Titel

Power & Energy Society General Meeting, 2009. PES '09. IEEE

Conference_Location

Calgary, AB

ISSN

1944-9925

Print_ISBN

978-1-4244-4241-6

Type

conf

DOI

10.1109/PES.2009.5275919

Filename

5275919