Pass-through of emissions costs in electricity markets
Pass-through of emissions costs in electricity markets / Natalia Fabra & Mar Reguant. NBER Working Paper N° 19613, November 2013, 35 p. http://www.nber.org/papers/w19613
Full text access : http://idei.fr/doc/conf/eem/papers_2013/fabra.pdf
Authors’s abstract :
We measure the pass-through of emissions costs to electricity prices and explore its determinants. We perform both reduced-form and structural estimations based on optimal bidding in this market. Using rich micro-level data, we estimate the channels affecting pass-through in a flexible manner, with minimal functional form assumptions. Contrary to many studies in the general pass-through literature, we find that emissions costs are almost fully passed-through to electricity prices. Since electricity is traded through high-frequency auctions for highly inelastic demand, firms have weak incentives to adjust markups after the cost shock. Furthermore, the costs of price adjustment are small.
OpenEdition vous propose de citer ce billet de la manière suivante :
Danièle Revel (15 novembre 2013). Pass-through of emissions costs in electricity markets. Veille énergie climat. Consulté le 19 janvier 2025 à l’adresse https://doi.org/10.58079/oao7
