EconPapers    
Economics at your fingertips  
 

Electricity Prices, River Temperatures and Cooling Water Scarcity

Grant R. McDermott () and Øivind Nilsen ()
Additional contact information
Grant R. McDermott: Dept. of Economics, Norwegian School of Economics and Business Administration, Postal: NHH , Department of Economics, Helleveien 30, N-5045 Bergen, Norway

No 18/2011, Discussion Paper Series in Economics from Norwegian School of Economics, Department of Economics

Abstract: 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 analyses 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.

Keywords: Thermal-based power; water scarcity. (search for similar items in EconPapers)
JEL-codes: Q25 Q41 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2011-09-22
New Economics Papers: this item is included in nep-cis and nep-ene
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://www.nhh.no/Admin/Public/DWSDownload.aspx?Fi ... pers%2f2011%2f18.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.nhh.no/Admin/Public/DWSDownload.aspx?File=%2fFiles%2fFiler%2finstitutter%2fsam%2fDiscussion+papers%2f2011%2f18.pdf [302 Found ]--> https://www.nhh.no/Admin/Public/DWSDownload.aspx?File=%2fFiles%2fFiler%2finstitutter%2fsam%2fDiscussion+papers%2f2011%2f18.pdf)

Related works:
Journal Article: Electricity Prices, River Temperatures, and Cooling Water Scarcity (2014) Downloads
Working Paper: Electricity Prices, River Temperatures and Cooling Water Scarcity (2012) Downloads
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:hhs:nhheco:2011_018

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Discussion Paper Series in Economics from Norwegian School of Economics, Department of Economics NHH, Department of Economics, Helleveien 30, N-5045 Bergen, Norway. Contact information at EDIRC.
Bibliographic data for series maintained by Karen Reed-Larsen ().

 
Page updated 2020-07-26
Handle: RePEc:hhs:nhheco:2011_018