An Empirical Investigation of Explosive Price Behavior in U.S. State-Level Electricity Markets Across Consumer Segments

Merve Mert Saritas, Gokhan Konat, Levent Dalyanci and Veli Yilanci ()
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Merve Mert Saritas: Iktisat Bolumu, Siyasal Bilgiler Fakultesi, Çanakkale Onsekiz Mart Üniversitesi, Canakkale 17020, Türkiye
Gokhan Konat: Ekonometri Bolumu, Iktisadi ve Idari Bilimler Fakultesi, Abant Izzet Baysal Universitesi, Bolu 14030, Türkiye
Levent Dalyanci: Iktisat Bolumu, Siyasal Bilgiler Fakultesi, Çanakkale Onsekiz Mart Üniversitesi, Canakkale 17020, Türkiye
Veli Yilanci: Iktisat Bolumu, Siyasal Bilgiler Fakultesi, Çanakkale Onsekiz Mart Üniversitesi, Canakkale 17020, Türkiye

Energies, 2025, vol. 18, issue 21, 1-29

Abstract: This study investigates speculative bubbles in U.S. state-level electricity markets across commercial, industrial, and residential segments. Using monthly data (2005–2025) from the U.S. Energy Information Administration and employing the Generalized Supremum Augmented Dickey–Fuller test, evidence of localized explosive price behavior was observed predominantly in Florida, Hawaii, Pennsylvania, and Oregon, among others. These bubbles, often tied to market disruptions such as fuel price volatility and post-pandemic recovery, were mainly short-lived and region-specific. The findings highlight the need for tailored, state-specific regulatory strategies to address unique market dynamics, ensuring stability amidst the ongoing energy transition.

Keywords: price bubbles; electricity markets; U.S. state-level analysis (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: 2025
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