Hurricane-Induced Power Disruptions: Household Preferences for Improving Infrastructure Resilience

In recent years, the increase in the frequency and intensity of hurricanes has posed a significant threat to coastal infrastructures, particularly the electricity supply system. In response to these challenges, several policies have been proposed to improve the resilience of electricity systems, specifically focusing on expediting the restoration of disrupted utilities. However, implementing these resilience plans comes with considerable costs, which must be balanced against the potential benefits experienced by households. This study examines the willingness of Florida residents to financially support the improvement of the electricity infrastructure resilience in response to hurricanes in Florida. We conduct a Discrete Choice Experiment involving 1138 Floridians to assess their willingness to pay for different scenarios aimed at improving electricity system resilience. Three panel mixed logit models are estimated, accounting for preference heterogeneity. Results indicate that the annual welfare estimates per individual range from 525.51 to604.70 across the restoration scenarios. The findings offer compelling evidence, indicating strong support for minimizing hurricane-induced power disruptions by implementing the proposed resilience programs in Florida.