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The deregulation effects of Finnish electricity markets on district heating prices

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  • Linden, Mikael
  • Peltola-Ojala, Päivi

Abstract

This paper investigates an empirical econometric panel data model in order to test deregulation and regional market structure effects on district heating prices in Finland for period 1996-2002. The data was collected from 76 district heating firms throughout Finland. Special emphasis is placed on the modeling of policy-induced competition, which began in year 1999, regional based fuel selection, local market structures, and distribution network sharing effects. The results imply that the local structures of energy production and sales have an important role to play in the formation of market prices and that the price lowering effects of energy market deregulation are permanent.

Suggested Citation

  • Linden, Mikael & Peltola-Ojala, Päivi, 2010. "The deregulation effects of Finnish electricity markets on district heating prices," Energy Economics, Elsevier, vol. 32(5), pages 1191-1198, September.
  • Handle: RePEc:eee:eneeco:v:32:y:2010:i:5:p:1191-1198
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    References listed on IDEAS

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    1. Munksgaard, Jesper & Pade, Lise-Lotte & Fristrup, Peter, 2005. "Efficiency gains in Danish district heating. Is there anything to learn from benchmarking?," Energy Policy, Elsevier, vol. 33(15), pages 1986-1997, October.
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    Cited by:

    1. Chung, Mo & Park, Chuhwan & Lee, Sukgyu & Park, Hwa-Choon & Im, Yong-Hoon & Chang, Youngho, 2012. "A decision support assessment of cogeneration plant for a community energy system in Korea," Energy Policy, Elsevier, vol. 47(C), pages 365-383.
    2. Li, Hailong & Sun, Qie & Zhang, Qi & Wallin, Fredrik, 2015. "A review of the pricing mechanisms for district heating systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 56-65.
    3. Mikael Linden, Matti Makela, and Jussi Uusivuori, 2013. "Fuel Input Substitution under Tradable Carbon Permits System: Evidence from Finnish Energy Plants 2005-2008," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
    4. Connolly, D. & Lund, H. & Mathiesen, B.V. & Werner, S. & Möller, B. & Persson, U. & Boermans, T. & Trier, D. & Østergaard, P.A. & Nielsen, S., 2014. "Heat Roadmap Europe: Combining district heating with heat savings to decarbonise the EU energy system," Energy Policy, Elsevier, vol. 65(C), pages 475-489.
    5. Åberg, M. & Fälting, L. & Forssell, A., 2016. "Is Swedish district heating operating on an integrated market? – Differences in pricing, price convergence, and marketing strategy between public and private district heating companies," Energy Policy, Elsevier, vol. 90(C), pages 222-232.
    6. Zhang, Junli & Ge, Bin & Xu, Hongsheng, 2013. "An equivalent marginal cost-pricing model for the district heating market," Energy Policy, Elsevier, vol. 63(C), pages 1224-1232.

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