What Fuels the Volatility of Electricity Prices?

Alessio Saretto, Anastasia Shcherbakova and Jeremy Lin

The Energy Journal, 2025, vol. 46, issue 2, 201-225

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 price volatility. Contrary to anecdotal evidence, we find that wholesale prices are less volatile when natural gas is on the margin more often. JEL Classification: Q4

Keywords: policy spillovers; electricity price volatility; fuel switching (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:sae:enejou:v:46:y:2025:i:2:p:201-225

DOI: 10.1177/01956574241288989

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