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

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 four days) and increased experienced costs. Results from a linear regression analysis show that upgrades for increased home resilience to power outages cost $(590 to 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.