What Fuels the Volatility of Electricity Prices?

Jeremy Lin (), Alessio Saretto and Anastasia Shcherbakova ()
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Jeremy Lin: https://advanced.jhu.edu/directory/jeremy-lin/

No 2408, Working Papers from Federal Reserve Bank of Dallas

Abstract: We use emergency outages of coal generators as an exogenous source of variation in the power generation stack to study how changes in marginal fuel affect real-time prices. Contrary to anecdotal evidence, we find that wholesale prices are less volatile when natural gas is on the margin more often.

Keywords: policy; spillovers; electricity; price volatility; Fuel; Environmental policy (search for similar items in EconPapers)
JEL-codes: Q41 (search for similar items in EconPapers)
Pages: 43
Date: 2024-10-15
New Economics Papers: this item is included in nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:fip:feddwp:98977

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DOI: 10.24149/wp2408

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