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Price Spikes in the Italian Electricity Market: An Economic Analysis
Department of Economic and Business Sciences, University of Cagliari, Cagliari, Italy
Department of Economic and Business Sciences, University of Cagliari, Cagliari, Italy
- 1 Department of Economic and Business Sciences, University of Cagliari, Cagliari, Italy
- 2 Department of Economic and Business Sciences, University of Cagliari, Cagliari, Italy
Modern Economy·Volume 10 (2019)·Pages 2145–2156·Published 11 September 2019·DOI10.4236/me.2019.109135
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Abstract
Since their liberalization, the electricity markets are characterized by a rather high volatility, which includes price spikes as one of the stylized and specific characteristics of this market. In this paper, we investigate the factors and mechanisms determining these spikes. Based on the Italian electricity market data, we perform a specific analysis of the auctions mechanisms and of the hourly bid and offer of electricity characteristics, for determining how and why do price spikes occur.
KeywordsElectricity MarketsAuctionsBid and OfferPrice SpikesProbit Model
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