Defining European Wholesale Electricity Markets: An “And/Or” Approach
AbstractAn important question in the dynamic European wholesale markets for electricity is whether to define the geographical market at the level of an individual member state or more broadly. We show that if we currently take the traditional approach by considering for each member state whether there is one single other country that provides a substitute for domestic production, the market in each separate member state has still to be considered a separate market. However, if we allow for the possibility that at different moments in time there is another country that provides a substitute for domestic production, then the conclusion should be that certain member states do not constitute a separate geographical market. This is in particular true for Belgium, but also for The Netherlands, France, and to some extent also for Germany and Austria. We call this alternative approach the "and/or" approach.
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 09-079/3.
Date of creation: 14 Sep 2009
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Electricity; convergence; market definition; market coupling;
Other versions of this item:
- Elbert Dijkgraaf & Maarten C.W. Janssen, 2009. "Defining European Wholesale Electricity Market: An “And/Or” Approach," Tinbergen Institute Discussion Papers 09-79/3, Tinbergen Institute.
- L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
- L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-10-31 (All new papers)
- NEP-EEC-2009-10-31 (European Economics)
- NEP-ENE-2009-10-31 (Energy Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bruno Bosco & Lucia Parisio & Matteo Pelagatti & Fabio Baldi, 2007.
"A robust multivariate long run analysis of European electricity prices,"
20070901, Università degli Studi di Milano-Bicocca, Dipartimento di Statistica.
- Matteo Pelagatti & Bruno Bosco & Lucia Parisio & Fabio Baldi, 2007. "A Robust Multivariate Long Run Analysis of European Electricity Prices," Working Papers 2007.103, Fondazione Eni Enrico Mattei.
- Huisman, R. & Mahieu, R.J., 2001.
"Regime Jumps in Electricity Prices,"
ERS-2001-48-F&A, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
- Bruno Bosco & Lucia Parisio & Matteo Pelagatti & Fabio Baldi, 2006. "Deregulated Wholesale Electricity Prices in Europe," Working Papers 20061001, Università degli Studi di Milano-Bicocca, Dipartimento di Statistica.
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