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Estimating temperature effects on the Italian electricity market

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  • Bigerna, Simona

Abstract

This paper provides empirical evidence of the effects that weather conditions exert on the electricity market, offering a new contribution to the understanding of hourly regional price formation in the day ahead market in Italy. The empirical estimation uses a new data set of hourly data on both market variables and temperature variables.

Suggested Citation

  • Bigerna, Simona, 2018. "Estimating temperature effects on the Italian electricity market," Energy Policy, Elsevier, vol. 118(C), pages 257-269.
    • Handle: RePEc:eee:enepol:v:118:y:2018:i:c:p:257-269
    DOI: 10.1016/j.enpol.2018.03.068
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    Cited by:

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    3. Bortolan, Leonardo & Dey, Atreya & Taschini, Luca, 2024. "Volatile temperatures and their effects on equity returns and firm performance," LSE Research Online Documents on Economics 128521, London School of Economics and Political Science, LSE Library.
    4. Leonardo Bortolan & Atreya Dey & Luca Taschini, 2024. "Volatile Temperatures and Their Effects on Equity Returns and Firm Performance," CESifo Working Paper Series 11438, CESifo.
    5. Marwan, Marwan, 2020. "The impact of probability of electricity price spike and outside temperature to define total expected cost for air conditioning," Energy, Elsevier, vol. 195(C).
    6. Mosquera-López, Stephanía & Uribe, Jorge M. & Manotas-Duque, Diego F., 2018. "Effect of stopping hydroelectric power generation on the dynamics of electricity prices: An event study approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 456-467.
    7. Mosquera-López, Stephania & Uribe, Jorge M. & Joaqui-Barandica, Orlando, 2024. "Weather conditions, climate change, and the price of electricity," Energy Economics, Elsevier, vol. 137(C).
    8. Alcantara da Silva Neto, Waldemiro & Vaz Lobo Bittencourt, Mauricio & Eduardo Monsueto, Sandro, 2024. "Addressing low-quality electricity service for low-income consumers: Empirical evidence from Brazil," Utilities Policy, Elsevier, vol. 88(C).
    9. Kohút, Roman & Klaučo, Martin & Kvasnica, Michal, 2025. "Unified carbon emissions and market prices forecasts of the power grid," Applied Energy, Elsevier, vol. 377(PC).

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    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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