What Fuels the Volatility of Electricity Prices?
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 price volatility. Contrary to anecdotal evidence, we find that wholesale prices are less volatile when natural gas is on the margin more often. JEL Classification: Q4
Authors
- Alessio Saretto
- Anastasia Shcherbakova (ORCID: https://orcid.org/0000-0001-6318-9689)
- Jeremy Lin (ORCID: https://orcid.org/0000-0002-9331-6949)
Institutions
- Johns Hopkins University (US)
- Highland Community College - Illinois (US)
- Federal Reserve Bank of Dallas (US)
- Coherent (United States) (US)
Publication Details
- Journal
- The Energy Journal
- Published
- 2024-11-25
- DOI
- https://doi.org/10.1177/01956574241288989
- Citations
- 2
- Primary Topic
- Market Dynamics and Volatility
- Type
- article
- Field-Weighted Citation Impact
- 2.26