Estimation of Power Interruption Cost Using Causality Model for Industrial Sector in Iran

摘要

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.