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Emerging costs deriving from blackouts for individual firms: evidence from an Italian case study

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Abstract
Among the costs deriving to firms from electric blackouts, emerging costs are the less studied ones. This work aims at shedding some light on the specific topic with an empirical approach. It performs in fact three case studies, describing blackout emerging costs for three firms of very different industries. Data obtained in the cases are described, and a cost function is tentatively sketched. Case studies show that emerging costs, though not prevailing in value over the lost production costs, may be relevant in some cases. At the end of the work, conclusions are drawn, and learned lessons are outlined.

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  • Clementina Bruno & Ugo Finardi & Azahara Lorite-Espejo & Elena Ragazzi, 2016. "Emerging costs deriving from blackouts for individual firms: evidence from an Italian case study," quaderni IRCrES 201601, CNR-IRCrES Research Institute on Sustainable Economic Growth - Moncalieri (TO) ITALY - former Institute for Economic Research on Firms and Growth - Torino (TO) ITALY.
    • Handle: RePEc:csc:ircrqu:201601
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    References listed on IDEAS

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    More about this item

    Keywords

    electric power; blackout; emerging costs; case studies; production loss;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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