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dc.contributor.authorApergis, Nicholas
dc.contributor.authorFontini, Fulvio
dc.contributor.authorInchauspe, Julian
dc.date.accessioned2019-01-21T14:16:25Z
dc.date.available2019-01-21T14:16:25Z
dc.date.issued2016-07-19
dc.identifier.citationApergis, N. Fontini, F., and Inchauspe, J. (2017) ‘Integration of regional electricity markets in Australia: a price convergence assessment’, Energy Economics, 62, pp. 411-418. Doi: 10.1016/j.eneco.2016.06.022en
dc.identifier.issn0140-9883
dc.identifier.doi10.1016/j.eneco.2016.06.022
dc.identifier.urihttp://hdl.handle.net/10545/623339
dc.description.abstractFrom 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.
dc.description.sponsorshipN/Aen
dc.language.isoenen
dc.publisherElsevieren
dc.relation.urlhttp://www.sciencedirect.com/science/article/pii/S0140988316301700en
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/4.0/*
dc.subjectElectricity pricesen
dc.subjectPrice convergenceen
dc.subjectAustraliaen
dc.subjectClustering groups approachen
dc.titleIntegration of regional electricity markets in Australia: a price convergence assessmenten
dc.typeArticleen
dc.contributor.departmentUniversity of Piraeusen
dc.contributor.departmentUniversity of Paduaen
dc.contributor.departmentCurtin Universityen
dc.identifier.journalEnergy Economicsen
dc.dateAccepted2016-06-20
dc.dateAccepted2016-06-20
html.description.abstractFrom 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.


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