IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v133y2024ics0140988324002135.html
   My bibliography  Save this article

Wired together: Integration and efficiency in European electricity markets

Author

Listed:
  • Karahan, Cenk C.
  • Odabaşı, Attila
  • Tiryaki, C. Sani

Abstract

This study investigates the efficiency dynamics of spot and futures electricity markets across a sample of European countries, while taking into account the impact of market couplings. The analysis employs three distinct efficiency measures, namely entropy, Hurst measure, and fractal dimension, to examine the markets of ten different countries. Specifically, entropy is used to gauge the randomness in market prices, while Hurst measure captures the long-term memory of prices, and fractal dimension measures the roughness and irregularity of price series. Our results indicate that these markets display analogous patterns of behavior, with improvements in efficiency observed following the introduction of structural and regulatory changes, such as market couplings. These findings underscore the potential advantages of market liberalization and energy market integration for both consumers and industry players, thus offering important insights for policy makers in this area.

Suggested Citation

  • Karahan, Cenk C. & Odabaşı, Attila & Tiryaki, C. Sani, 2024. "Wired together: Integration and efficiency in European electricity markets," Energy Economics, Elsevier, vol. 133(C).
    • Handle: RePEc:eee:eneeco:v:133:y:2024:i:c:s0140988324002135
    DOI: 10.1016/j.eneco.2024.107505
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140988324002135
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eneco.2024.107505?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    European electricity markets; Efficiency; Market coupling; Entropy; Long-term memory; Fractal dimension;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:133:y:2024:i:c:s0140988324002135. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eneco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.