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Do energy prices converge across Russian regions?

  • Akhmedjonov, Alisher
  • Lau, Chi Keung

This paper tests for price convergence in Russian energy markets from January 2003 to October 2010. Monthly energy prices for four energy products (diesel, gasoline, electricity and coal) for 83 Russian regions are drawn from Russia's statistical agency Rosstat. The study contributes to the existing literature by using the Exponential Smooth Auto-Regressive Augmented Dickey–Fuller unit root test in a panel setup, which encompasses cross-section dependence. We find that there are no fully integrated national energy markets in Russia, possibly due to the peripheral position of diverging regions, unbalanced distribution of energy reserves and limited cross-border transmission capacity.

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File URL: http://www.sciencedirect.com/science/article/pii/S0264999312001447
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Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 29 (2012)
Issue (Month): 5 ()
Pages: 1623-1631

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Handle: RePEc:eee:ecmode:v:29:y:2012:i:5:p:1623-1631
DOI: 10.1016/j.econmod.2012.05.023
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/30411

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