I try to see this from a developing country perspective, ZA, where the grid is unreliable, the rich (there isn't much of a middle class) are getting their solar panels and other power generators, and the poor are left behind..
Very interesting - what do you think of the idea that consumers recognize the risk, but expect it to be born by the electricity provider in exchange for increased prices so the provider can bury lines, continually upgrade systems etc?
Been thinking about this since you first mentioned it a few years back. Really fascinating topic
I try to see this from a developing country perspective, ZA, where the grid is unreliable, the rich (there isn't much of a middle class) are getting their solar panels and other power generators, and the poor are left behind..
Thanks for another great application of econ!
MB, you are raising a very important point. Can I gently nudge you take a look at Megan's paper posted here under working papers?
https://www.meganlangecon.com/research
perfect, in SA we can assume that the Apartheid-era townships (usually located 20-25 km from the cities) are near-rural areas, thanks for the nudge!
Very interesting - what do you think of the idea that consumers recognize the risk, but expect it to be born by the electricity provider in exchange for increased prices so the provider can bury lines, continually upgrade systems etc?