American Journal of Economics and Business Administration

Power Outage, Business Continuity and Businesses' Choices of Power Outage Mitigation Measures

Ali Asgary and Yeganeh Mousavi-Jahromi

DOI : 10.3844/ajebasp.2011.312.320

American Journal of Economics and Business Administration

Volume 3, Issue 2

Pages 312-320


Problem statement: Power outage has been mentioned as one of the most experienced and perceived risks by various types of businesses and organizations. Thus, reducing the impacts of power outage has become a key agenda in business continuity planning. Back-up or stand-by generators are among the most well known measures taken by power consumers to tackle the power outage problem. Approach: A survey was conducted to understand various aspects of power outage and the impacts of power outrage on businesses. In addition a choice experiment method was used to derive businesses’ preferences for different power outage mitigation measures that would have a range of prices, space requirements, air and noise pollution as well as mobility attributes using a sample of Canadian businesses located in the . Sample was drawn from businesses operating in the Greater Toronto Area (GTA) and surrounding communities in Ontario, Canada. Results: It was found that majority of businesses have experienced and unconvinced by power outage and consider it to be a major risk to their operations. Production loss, data loss, damage to equipment and loss of lighting are the most significant sources for inconveniences caused by the power outages. It was found that a considerable number of businesses have not taken appropriate measures to mitigate this risk. Estimations from the responses revealed that sample businesses had a positive willingness to pay for power outage reduction and that businesses prefer power outage mitigation measures that are least costly, have low levels of air and noise pollution and occupy smaller spaces respectively. Conclusion: An uninterrupted power supply is an important element of business continuity in today’s business world. Although many businesses are not fully prepared against power outages, they are willing to pay for low cost and low pollution power outage mitigation measures.


© 2011 Ali Asgary and Yeganeh Mousavi-Jahromi. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.