Are you prepared for when the power goes out? To prevent massive wildfires in drought-prone, high-wind areas, electrical companies have begun preemptively shutting off electricity. These planned shutdowns are called public safety power shutoffs, abbreviated to PSPS, and they’re increasingly common. So far this year, we’ve seen them in Texas, New Mexico and California.

Unlike regular power failures, which on average last only about two hours while a piece of broken equipment is repaired, a PSPS lasts until weather conditions improve, which could be days. And these shutoffs come at a steep price. In 2010 alone, they cost California over US$13 billion. A 2019 analysis of shutoffs in Placer County, California, found that they harmed 70% of local businesses.

I am a business school professor who studies how people pay for things, including during emergencies. As I point out in my new book “The Power of Cash: Why Using Paper Money is Good for You and Society,” many people have abandoned paper money and switched to electronic payments such as credit cards and mobile apps. This can become a big problem during an emergency, since these systems need electricity to operate. The switch to electronic payments........

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