Quotation Gugler, Klaus, Haxhimusa, Adhurim. 2019. Market integration and technology mix: Evidence from the German and French electricity markets. Energy Policy. 126 30-46.


RIS


BibTeX

Abstract

We employ hourly data from German and French electricity markets and show that integration of German and French electricity markets depends on the technology mix and the characteristics of neighbouring markets. Only when German and French electricity markets employ ‘similar’ generation mixes price spreads and the likelihood of the congestion of electricity flows are significantly reduced. We find that up to 31% of the price convergence is not attributed to the forces of arbitrage backed by interconnection capacities, but it is driven by coincident similarities in technology mixes. Furthermore, we document consistent evidence for the most important predictions of trade theory if markets are characterised by increasing marginal cost curves and limited cross-border capacities, i.e. limited convergence, congestion and cross-border externalities. Our results call for a coordinated European energy policy.

Tags

Press 'enter' for creating the tag

Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Energy Policy
Citation Index SSCI
WU-Journal-Rating new FIN-A, INF-A, STRAT-B, WH-B
Language English
Title Market integration and technology mix: Evidence from the German and French electricity markets
Volume 126
Year 2019
Page from 30
Page to 46
Reviewed? Y
DOI https://doi.org/10.1016/j.enpol.2018.10.014
Open Access N
JEL D47,F15, L81, L98, Q42, Q48

Associations

People
Gugler, Klaus (Details)
Haxhimusa, Adhurim (Former researcher)
Organization
Research Institute for Regulatory Economics FI (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
2906 Power industry (Details)
5370 Industrial economics (Details)
5372 Regulatory economics (Details)
Google Scholar: Search