Integration of regional electricity markets in Australia: A price convergence assessment
© 2016 Elsevier B.V.From an electricity market design perspective, it is relevant and practical to know which market structures allow for price convergence, and how long this takes to achieve. This study employs the Phillips and Sul (2007, 2009) methodology to test for the convergence of wholesale e...
| Main Authors: | , , |
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| Format: | Journal Article |
| Published: |
Elsevier
2017
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| Online Access: | http://hdl.handle.net/20.500.11937/58200 |
| _version_ | 1848760200873377792 |
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| author | Apergis, N. Fontini, F. Inchauspe, Julian |
| author_facet | Apergis, N. Fontini, F. Inchauspe, Julian |
| author_sort | Apergis, N. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | © 2016 Elsevier B.V.From an electricity market design perspective, it is relevant and practical to know which market structures allow for price convergence, and how long this takes to achieve. This study employs the Phillips and Sul (2007, 2009) methodology to test for the convergence of wholesale electricity prices across the Australian States. We identify a long-run, common price growth pattern that applies to a cluster formed by three Eastern States that share common market characteristics and limited physical interconnection. We also find another cluster with less competitive market structures that, although not interconnected, strongly converge towards their own trend. These findings confirm theoretical expectations while quantifying the rate of convergence. Finally, we also investigate the role that the carbon tax regime has played in the convergence process, with new empirical showing that the previous results are not affected, with the notable exception being the case of South Australia. |
| first_indexed | 2025-11-14T10:12:00Z |
| format | Journal Article |
| id | curtin-20.500.11937-58200 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T10:12:00Z |
| publishDate | 2017 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-582002020-06-02T01:36:35Z Integration of regional electricity markets in Australia: A price convergence assessment Apergis, N. Fontini, F. Inchauspe, Julian © 2016 Elsevier B.V.From an electricity market design perspective, it is relevant and practical to know which market structures allow for price convergence, and how long this takes to achieve. This study employs the Phillips and Sul (2007, 2009) methodology to test for the convergence of wholesale electricity prices across the Australian States. We identify a long-run, common price growth pattern that applies to a cluster formed by three Eastern States that share common market characteristics and limited physical interconnection. We also find another cluster with less competitive market structures that, although not interconnected, strongly converge towards their own trend. These findings confirm theoretical expectations while quantifying the rate of convergence. Finally, we also investigate the role that the carbon tax regime has played in the convergence process, with new empirical showing that the previous results are not affected, with the notable exception being the case of South Australia. 2017 Journal Article http://hdl.handle.net/20.500.11937/58200 10.1016/j.eneco.2016.06.022 Elsevier restricted |
| spellingShingle | Apergis, N. Fontini, F. Inchauspe, Julian Integration of regional electricity markets in Australia: A price convergence assessment |
| title | Integration of regional electricity markets in Australia: A price convergence assessment |
| title_full | Integration of regional electricity markets in Australia: A price convergence assessment |
| title_fullStr | Integration of regional electricity markets in Australia: A price convergence assessment |
| title_full_unstemmed | Integration of regional electricity markets in Australia: A price convergence assessment |
| title_short | Integration of regional electricity markets in Australia: A price convergence assessment |
| title_sort | integration of regional electricity markets in australia: a price convergence assessment |
| url | http://hdl.handle.net/20.500.11937/58200 |