Quotation Gugler, Klaus, Haxhimusa, Adhurim, Liebensteiner, Mario. 2018. Integration of European Electricity Markets: Evidence from Spot Prices. Energy Journal, 39, (SI2), 41-66.




This paper investigates the current state of market integration among European electricity day-ahead spot prices. In our empirical analysis we utilize a large sample of hourly spot prices of 25 European markets for the period 2010Jan01/01h-2015Jun30/24h and combine it with other relevant data such as hourly interconnector capacities and the existence of market coupling. Firstly, empirical results from cointegration analysis indicate that market integration increased from 2010 to 2012 but then declined until 2015, despite the introduction of market coupling in many markets. Secondly, we empirically assess error correction after price shocks and reach the conclusion that markets' strength of the error correction mechanism is rather modest. In general, our findings suggest that the integration among European electricity markets has a large potential for improvements from additional capacity investments and further promotion of market coupling.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Energy Journal
Citation Index SSCI
WU-Journal-Rating new VW-C, WH-B
Language English
Title Integration of European Electricity Markets: Evidence from Spot Prices
Volume 39
Number SI2
Year 2018
Page from 41
Page to 66
Reviewed? Y
DOI https://doi.org/10.5547/01956574.39.SI2.kgug
Open Access N
JEL D42, G13, F44


Gugler, Klaus (Details)
Haxhimusa, Adhurim (Former researcher)
Liebensteiner, Mario (Former researcher)
Research Institute for Regulatory Economics FI (Details)
Research areas (Ă–STAT Classification 'Statistik Austria')
2906 Power industry (Details)
5370 Industrial economics (Details)
5372 Regulatory economics (Details)
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