Can Forward Commodity Markets Improve Spot Market Performance? Evidence from Wholesale Electricity
| العنوان: | Can Forward Commodity Markets Improve Spot Market Performance? Evidence from Wholesale Electricity |
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| المؤلفون: | Frank A. Wolak, Akshaya Jha |
| المصدر: | American Economic Journal: Economic Policy. 15:292-330 |
| بيانات النشر: | American Economic Association, 2023. |
| سنة النشر: | 2023 |
| مصطلحات موضوعية: | Transaction cost, History, Spot contract, Polymers and Plastics, business.industry, Commodity, Spot market, Monetary economics, Industrial and Manufacturing Engineering, Information aggregation, Economics, Production (economics), Electricity market, Electricity, Business and International Management, business, General Economics, Econometrics and Finance |
| الوصف: | Forward markets are believed to aggregate information about future spot prices and reduce the cost of producing the commodity. We develop a measure of the extent to which forward and spot prices agree in markets with transaction costs. Using this measure, we show that day-ahead prices better reflect real-time prices at all locations in California’s electricity market after the introduction of financial trading. We then present evidence suggesting that operating costs and input fuel use fell after the introduction of financial trading on days when the nonconvexities inherent to the production and transmission of electricity are especially relevant. (JEL D23, D24, G13, L94, L98, Q48) |
| تدمد: | 1945-774X 1945-7731 |
| URL الوصول: | https://explore.openaire.eu/search/publication?articleId=doi_dedup___::2712fa6ab66fb25895a42db0361ac5da https://doi.org/10.1257/pol.20200234 |
| رقم الأكسشن: | edsair.doi.dedup.....2712fa6ab66fb25895a42db0361ac5da |
| قاعدة البيانات: | OpenAIRE |
| تدمد: | 1945774X 19457731 |
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