Liquefied Natural Gas Prices and Their Relationship with a Country’s Energy Mix: A Case Study for Greece

Christos Bentsos (), Demetris Koursaros, Kyriaki G. Louka, Konstantinos D. Melas () and Nektarios Michail
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Christos Bentsos: Department of Maritime Studies, University of Piraeus, 18534 Piraeus, Greece
Demetris Koursaros: Department of Commerce, Finance and Shipping, Cyprus University of Technology, Limassol 3036, Cyprus
Kyriaki G. Louka: Economic Analysis and Research Department, Central Bank of Cyprus, Nicosia 2002, Cyprus
Konstantinos D. Melas: Department of Economics, University of Western Macedonia, 50100 Kozani, Greece

Energies, 2023, vol. 16, issue 22, 1-16

Abstract: Using daily data, we investigate the relationship between European LNG prices, carbon prices (CO 2 ), electricity wholesale prices and changes in the electricity sector’s energy mix in Greece, using a vector error correction model (VECM). The results indicate that an increase in the daily average price of natural gas has the expected impact on Greece’s wholesale electricity price. As expected, gas and other fossil fuels act as substitute goods, while higher imports of electricity lower prices and have a negative impact on fossil fuel shares. Interestingly, carbon prices do not appear to have any significant impact on any variables, while the higher production of electricity from renewable sources pushes wholesale electricity prices down.

Keywords: natural gas; electricity; wholesale prices; fossil fuels (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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