Do energy prices converge across Russian regions?

Alisher Akhmedjonov and Chi Keung Lau

Economic Modelling, 2012, vol. 29, issue 5, 1623-1631

Abstract: This paper tests for price convergence in Russian energy markets from January 2003 to October 2010. Monthly energy prices for four energy products (diesel, gasoline, electricity and coal) for 83 Russian regions are drawn from Russia's statistical agency Rosstat. The study contributes to the existing literature by using the Exponential Smooth Auto-Regressive Augmented Dickey–Fuller unit root test in a panel setup, which encompasses cross-section dependence. We find that there are no fully integrated national energy markets in Russia, possibly due to the peripheral position of diverging regions, unbalanced distribution of energy reserves and limited cross-border transmission capacity.

Keywords: Russian energy markets; Price convergence; Non-linear panel unit root test (search for similar items in EconPapers)
JEL-codes: C22 O18 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:29:y:2012:i:5:p:1623-1631

DOI: 10.1016/j.econmod.2012.05.023

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