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Market integration among electricity markets and their major fuel source markets

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Author Info
Mjelde, James W.
Bessler, David A.

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Abstract

Dynamic price information flows among U.S. electricity wholesale spot prices and the prices of the major electricity generation fuel sources, natural gas, uranium, coal, and crude oil, are studied. Multivariate time series methods applied to weekly price data show that in contemporaneous time peak electricity prices move natural gas prices, which in turn influence crude oil. In the long run, price is discovered in the fuel sources market (except uranium), as these prices are weakly exogenous in a reduced rank regression representation of these energy prices.

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File URL: http://www.sciencedirect.com/science/article/B6V7G-4VNH40K-3/2/0043a24cc7c0b0cbf8c7078df234609e
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Publisher Info
Article provided by Elsevier in its journal Energy Economics.

Volume (Year): 31 (2009)
Issue (Month): 3 (May)
Pages: 482-491
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Handle: RePEc:eee:eneeco:v:31:y:2009:i:3:p:482-491

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Web page: http://www.elsevier.com/locate/eneco

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Related research
Keywords: VECM Market dynamics Electricity prices Fuel prices;

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This page was last updated on 2009-12-3.


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