Published October 1999 | Version v1
Journal article Metadata-only

Cointegration analysis of spot electricity prices. Insights on transmission efficiency in the western US

Creators

  • 1. Department of Economics, Institute for Mathematical Behavioral Sciences, University of California-Irvine, Irvine, CA (United States)
  • 2. School of Economics and Finance, The University of Hong Kong, Hong Kong (China)

Description

The US Energy Policy Act of 1992 promoted the development of spot markets for electric power by requiring utilities to open their transmission systems to wholesale power sales. In this paper, we specify and estimate a vector error correction model using peak and off-peak electricity spot prices during 1994-1996 covering 11 regional markets in the western United States and test these prices for evidence of market integration. The results show evidence of an efficient and stable wholesale power market. 11 refs

Additional details

Publishing Information

Journal Title
Energy Economics (Guildford)
Journal Volume
21
Journal Issue
5
Journal Page Range
p. 435-448
ISSN
0140-9883

INIS

Country of Publication
United Kingdom
Country of Input or Organization
Netherlands
INIS RN
32002269
Subject category
S29: ENERGY PLANNING, POLICY AND ECONOMY;
Descriptors DEI
ELECTRIC POWER; ELECTRICITY; MARKET; OFF-PEAK POWER; PEAK-LOAD PRICING; POWER TRANSMISSION; PRICES; RESELLERS; SPOT MARKET; US ENERGY POLICY AND CONSERVATION ACT; USA
Descriptors DEC
DEVELOPED COUNTRIES; ELECTRIC POWER; LAWS; MARKET; MARKETERS; NORTH AMERICA; POWER; PRICES