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What Fuels the Volatility of Electricity Prices?

Authors :
Saretto, Alessio
Shcherbakova, Anastasia
Lin, Jeremy
Source :
Working Papers Series (Federal Reserve Bank of Dallas); Oct2024, Issue 2408, preceding p1-41, 42p
Publication Year :
2024

Abstract

We use emergency outages of coal generators as an exogenous source of variation in the power generation stack to study how changes in marginal fuel affect real-time prices. Contrary to anecdotal evidence, we find that wholesale prices are less volatile when natural gas is on the margin more often. [ABSTRACT FROM AUTHOR]

Details

Language :
English
ISSN :
19312989
Issue :
2408
Database :
Complementary Index
Journal :
Working Papers Series (Federal Reserve Bank of Dallas)
Publication Type :
Report
Accession number :
180318682
Full Text :
https://doi.org/10.24149/wp2408