Electricity Prices, River Temperatures, and Cooling Water Scarcity
Grant R. McDermott and
Øivind A. Nilse
Authors registered in the RePEc Author Service: Øivind Anti Nilsen ()
Land Economics, 2014, vol. 90, issue 1, 131-148
Thermal-based power stations rely on water for cooling purposes. These water sources may be subject to incidents of scarcity, environmental regulations, and competing economic concerns. This paper analyzes the effect of water scarcity and increased river temperatures on German electricity prices from 2002 to 2009. Having controlled for demand effects, the results indicate that the electricity price is significantly impacted by both a change in river temperatures and the relative abundance of river water. An implication is that future climate change will affect electricity prices not only through changes in demand, but also via increased water temperatures and scarcity.
JEL-codes: Q25 Q41 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9) Track citations by RSS feed
Downloads: (external link)
A subscripton is required to access pdf files. Pay per article is available.
Working Paper: Electricity Prices, River Temperatures and Cooling Water Scarcity (2012)
Working Paper: Electricity Prices, River Temperatures and Cooling Water Scarcity (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:uwp:landec:v:90:y:2014:i:1:p:131-148
Access Statistics for this article
More articles in Land Economics from University of Wisconsin Press
Bibliographic data for series maintained by ().