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On the Exploitation of Market Power in the Nordic Electricity Markets. The Case of Elsam

Author

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  • Svend Hylleberg

    (Department of Economics, University of Aarhus, Denmark)

Abstract

In this paper a test is made of whether the Danish electricity producer, Elsam partly or fully exploits its temporary dominant position in hours of congestion at the Nordic electricity market. There seems to be evidences suggesting that Elsam is successful in pursuing its objective of having a price in Western Denmark close to the maximum price of the surrounding and connected areas.

Suggested Citation

  • Svend Hylleberg, 2004. "On the Exploitation of Market Power in the Nordic Electricity Markets. The Case of Elsam," Economics Working Papers 2004-5, Department of Economics and Business Economics, Aarhus University.
    • Handle: RePEc:aah:aarhec:2004-5
    as

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    File URL: https://repec.econ.au.dk/repec/afn/wp/04/wp04_05.pdf
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    References listed on IDEAS

    as
    1. Hjalmarsson, Erik, 2000. "Nord Pool: A Power Market Without Market Power," Working Papers in Economics 28, University of Gothenburg, Department of Economics.
    2. Haldrup, Niels & Nielsen, Morten Orregaard, 2006. "A regime switching long memory model for electricity prices," Journal of Econometrics, Elsevier, vol. 135(1-2), pages 349-376.
    3. Haldrup, Niels & Nielsen, Morten Orregaard, 2007. "Estimation of fractional integration in the presence of data noise," Computational Statistics & Data Analysis, Elsevier, vol. 51(6), pages 3100-3114, March.
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    Cited by:

    1. Bent Jesper Christensen & Thomas Elgaard Jensen & Rune Mølgaard, 2007. "Market Power in Power Markets: Evidence from Forward Prices of Electricity," CREATES Research Papers 2007-30, Department of Economics and Business Economics, Aarhus University.
    2. Tsuruhiko Nambu & Takaaki Ohnishi, 2010. "The dynamics and distribution of the area price in the Nord Pool," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 5(2), pages 181-189, December.

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    More about this item

    Keywords

    Electricity markets; Objectives of the firm; exploitation of dominant positions.;
    All these keywords.

    JEL classification:

    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General

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