EconPapers    
Economics at your fingertips  
 

Greener, more integrated, and less volatile? A quantile regression analysis of Italian wholesale electricity prices

Alessandro Sapio

Energy Policy, 2019, vol. 126, issue C, 452-469

Abstract: This paper provides estimates of quantile regression models of the relationship between Italian day-ahead electricity prices, the supply of renewables and the inception of a new cable (SAPEI, linking Sardinia with the Italian peninsula), in the 2006–2015 time window. The results confirm the merit order effects detected in the existing literature, both for photovoltaics and wind power, more strongly in market conditions characterised by moderately low price levels and with some implied increase in volatility. The new cable has apparently challenged the ability of power generating companies to extract value through price spikes, has mitigated volatility, and its effects have been complementary with those of renewables. Effects from photovoltaics are more sensitive to robustness checks. Differences across zonal markets are nonetheless detected.

Keywords: C34; L94; Q41; Electricity prices; Renewables; Merit order effect; Market integration; Quantile regression; Volatility (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301421518306736
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:126:y:2019:i:c:p:452-469

DOI: 10.1016/j.enpol.2018.10.017

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2020-02-19
Handle: RePEc:eee:enepol:v:126:y:2019:i:c:p:452-469