Financial convergence or decoupling in electricity and energy Markets? a dynamic study of OECD, Latin America and Asian countries
The motivation for this theoretical paper is to “shed further light” on electricity market liberalisation. The major influences on electricity prices in each country are local supply and demand conditions, which include costs of renewables and/or regulatory effects on pricing. This also includes eff...
| Main Authors: | , |
|---|---|
| Format: | Journal Article |
| Published: |
Canadian Center of Science and Education
2012
|
| Subjects: | |
| Online Access: | http://hdl.handle.net/20.500.11937/6921 |
| _version_ | 1848745216877527040 |
|---|---|
| author | Simpson, John Abraham, Santosh |
| author_facet | Simpson, John Abraham, Santosh |
| author_sort | Simpson, John |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | The motivation for this theoretical paper is to “shed further light” on electricity market liberalisation. The major influences on electricity prices in each country are local supply and demand conditions, which include costs of renewables and/or regulatory effects on pricing. This also includes effects of public or private monopoly pricing. However, many countries from a representative sample of groups of economies, show long-term equilibrium relationships in their electricity and energy stock market sectors. In these countries in the short-term, exogeneity lies with the energy sectors in the EMU, the UK, New Zealand, the Philippines, Hong Kong and Thailand. In the cases of the US and India the electricity markets are exogenous, which is probably due to the sheer size of those markets. Where there is evidence of cointegration the nexus between electricity and energy sectors remains and the strength of this relationship is indicative of greater progress in electricity market liberalisation. This is because their electricity prices are influenced to a significant degree by global fossil fuel supply costs. In those cases domestic factors such as cost of regulatory environments are less important. |
| first_indexed | 2025-11-14T06:13:50Z |
| format | Journal Article |
| id | curtin-20.500.11937-6921 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T06:13:50Z |
| publishDate | 2012 |
| publisher | Canadian Center of Science and Education |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-69212017-09-13T16:04:15Z Financial convergence or decoupling in electricity and energy Markets? a dynamic study of OECD, Latin America and Asian countries Simpson, John Abraham, Santosh pricing energy sector VAR causality VECM regulatory environment electricity Granger fossil fuels country The motivation for this theoretical paper is to “shed further light” on electricity market liberalisation. The major influences on electricity prices in each country are local supply and demand conditions, which include costs of renewables and/or regulatory effects on pricing. This also includes effects of public or private monopoly pricing. However, many countries from a representative sample of groups of economies, show long-term equilibrium relationships in their electricity and energy stock market sectors. In these countries in the short-term, exogeneity lies with the energy sectors in the EMU, the UK, New Zealand, the Philippines, Hong Kong and Thailand. In the cases of the US and India the electricity markets are exogenous, which is probably due to the sheer size of those markets. Where there is evidence of cointegration the nexus between electricity and energy sectors remains and the strength of this relationship is indicative of greater progress in electricity market liberalisation. This is because their electricity prices are influenced to a significant degree by global fossil fuel supply costs. In those cases domestic factors such as cost of regulatory environments are less important. 2012 Journal Article http://hdl.handle.net/20.500.11937/6921 10.5539/ijef.v4n12p1 Canadian Center of Science and Education fulltext |
| spellingShingle | pricing energy sector VAR causality VECM regulatory environment electricity Granger fossil fuels country Simpson, John Abraham, Santosh Financial convergence or decoupling in electricity and energy Markets? a dynamic study of OECD, Latin America and Asian countries |
| title | Financial convergence or decoupling in electricity and energy Markets? a dynamic study of OECD, Latin America and Asian countries |
| title_full | Financial convergence or decoupling in electricity and energy Markets? a dynamic study of OECD, Latin America and Asian countries |
| title_fullStr | Financial convergence or decoupling in electricity and energy Markets? a dynamic study of OECD, Latin America and Asian countries |
| title_full_unstemmed | Financial convergence or decoupling in electricity and energy Markets? a dynamic study of OECD, Latin America and Asian countries |
| title_short | Financial convergence or decoupling in electricity and energy Markets? a dynamic study of OECD, Latin America and Asian countries |
| title_sort | financial convergence or decoupling in electricity and energy markets? a dynamic study of oecd, latin america and asian countries |
| topic | pricing energy sector VAR causality VECM regulatory environment electricity Granger fossil fuels country |
| url | http://hdl.handle.net/20.500.11937/6921 |