Prices across the markets : how the German coal-based electricity price may affect the Swedish nuclear/hydro-based system

• The paper elaborates on the possible correlations between the electricity prices in two neighbouring regions.The question is of interest since a large part of the public and some politicians feel that the European CO2 emission trading system ought not to affect the hydro- and nuclear-based Swedish electricity market. The analysis builds upon empirical observations and simple econometric testing. Our results highlight some of connections between the Swedish and German electricity prices and we qualitatively discuss these results. Furthermore, we restate the obvious fact that the investment climate in Sweden must improve if the wish is to avoid having coalbased electricity production on the margin.

Subject headings

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Economics (hsv//eng)

Keyword

Economics

Nationalekonomi

Publication and Content Type

ref (subject category)

art (subject category)