IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v90y2016icp222-232.html
   My bibliography  Save this article

Is Swedish district heating operating on an integrated market? – Differences in pricing, price convergence, and marketing strategy between public and private district heating companies

Author

Listed:
  • Åberg, M.
  • Fälting, L.
  • Forssell, A.

Abstract

The deregulation of the Swedish electricity market in 1996 made it possible to operate municipal district heating commercially. Until that time district heating had been organized mainly as municipal utilities. After 1996 district heating is instead expected to function on a market. In competitive and integrated markets, prices are expected to be equal, or converging. To find out if district heating operates on an integrated market the differences in price levels, price convergence, price strategy, and business goals, among municipal, private and state owned district heating companies are investigated.

Suggested Citation

  • Åberg, M. & Fälting, L. & Forssell, A., 2016. "Is Swedish district heating operating on an integrated market? – Differences in pricing, price convergence, and marketing strategy between public and private district heating companies," Energy Policy, Elsevier, vol. 90(C), pages 222-232.
  • Handle: RePEc:eee:enepol:v:90:y:2016:i:c:p:222-232
    DOI: 10.1016/j.enpol.2015.12.030
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421515302433
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.enpol.2015.12.030?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. David S. Jacks & Kevin H. O'Rourke & Jeffrey G. Williamson, 2011. "Commodity Price Volatility and World Market Integration since 1700," The Review of Economics and Statistics, MIT Press, vol. 93(3), pages 800-813, August.
    2. Ramunas Gatautis, 2004. "Regulation and Competition in the Lithuanian District Heating Sector," Energy & Environment, , vol. 15(2), pages 297-307, March.
    3. Baumol, William J, 1982. "Contestable Markets: An Uprising in the Theory of Industry Structure," American Economic Review, American Economic Association, vol. 72(1), pages 1-15, March.
    4. Uebele, Martin, 2011. "National and international market integration in the 19th century: Evidence from comovement," Explorations in Economic History, Elsevier, vol. 48(2), pages 226-242, April.
    5. Federico, Giovanni, 2011. "When did European markets integrate?," European Review of Economic History, Cambridge University Press, vol. 15(1), pages 93-126, April.
    6. David, Paul A, 1985. "Clio and the Economics of QWERTY," American Economic Review, American Economic Association, vol. 75(2), pages 332-337, May.
    7. Haldrup, Niels, "undated". "Empirical analysis of price data in the delineation of the relevant geographical market in competition analysis," Economics Working Papers 2003-9, Department of Economics and Business Economics, Aarhus University.
    8. Westin, Paul & Lagergren, Fredrik, 2002. "Re-regulating district heating in Sweden," Energy Policy, Elsevier, vol. 30(7), pages 583-596, June.
    9. Grohnheit, Poul Erik & Gram Mortensen, Bent Ole, 2003. "Competition in the market for space heating. District heating as the infrastructure for competition among fuels and technologies," Energy Policy, Elsevier, vol. 31(9), pages 817-826, July.
    10. Linden, Mikael & Peltola-Ojala, Päivi, 2010. "The deregulation effects of Finnish electricity markets on district heating prices," Energy Economics, Elsevier, vol. 32(5), pages 1191-1198, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dominković, D.F. & Bačeković, I. & Sveinbjörnsson, D. & Pedersen, A.S. & Krajačić, G., 2017. "On the way towards smart energy supply in cities: The impact of interconnecting geographically distributed district heating grids on the energy system," Energy, Elsevier, vol. 137(C), pages 941-960.
    2. Egüez, Alejandro, 2021. "District heating network ownership and prices: The case of an unregulated natural monopoly," Utilities Policy, Elsevier, vol. 72(C).
    3. Egüez, Alejandro, 2020. "Ownership and district heating prices: The case of an unregulated natural monopoly," Umeå Economic Studies 980, Umeå University, Department of Economics.
    4. Ziemele, Jelena & Gravelsins, Armands & Blumberga, Andra & Blumberga, Dagnija, 2017. "Sustainability of heat energy tariff in district heating system: Statistic and dynamic methodologies," Energy, Elsevier, vol. 137(C), pages 834-845.
    5. Gorroño-Albizu, Leire & de Godoy, Jaqueline, 2021. "Getting fair institutional conditions for district heating consumers: Insights from Denmark and Sweden," Energy, Elsevier, vol. 237(C).
    6. Diana Korsakaite & Darius Bieksa & Egle Bieksiene, 2018. "Third-party access in district heating: Lithuanian case analysis," Competition and Regulation in Network Industries, , vol. 19(3-4), pages 218-241, September.
    7. Zbigniew Juroszek & Weronika Juroszek, 2018. "Attitudes of heat plant managers as one of the key obstacles to district heating decarbonization in Poland," Energy & Environment, , vol. 29(7), pages 1116-1129, November.
    8. Fang, Yujuan & Chen, Laijun & Mei, Shengwei & Wei, Wei & Huang, Shaowei & Liu, Feng, 2019. "Coal or electricity? An evolutionary game approach to investigate fuel choices of urban heat supply systems," Energy, Elsevier, vol. 181(C), pages 107-122.
    9. Ugis Sarma & Girts Karnitis & Janis Zuters & Edvins Karnitis, 2019. "District heating networks: enhancement of the efficiency," Post-Print hal-02188841, HAL.
    10. Biggar, Darryl & Söderberg, Magnus, 2020. "Empirical analysis of how political ideology and ownership influence price stability in the Swedish district heating market," Energy Policy, Elsevier, vol. 145(C).
    11. Boscan, Luis & Söderberg, Magnus, 2021. "A theoretical and empirical analysis of district heating cost in Denmark," Energy Economics, Elsevier, vol. 99(C).
    12. Ma, Zheng & Knotzer, Armin & Billanes, Joy Dalmacio & Jørgensen, Bo Nørregaard, 2020. "A literature review of energy flexibility in district heating with a survey of the stakeholders’ participation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 123(C).
    13. Holzleitner, Marie & Moser, Simon & Puschnigg, Stefan, 2020. "Evaluation of the impact of the new Renewable Energy Directive 2018/2001 on third-party access to district heating networks to enforce the feed-in of industrial waste heat," Utilities Policy, Elsevier, vol. 66(C).
    14. Dominković, Dominik Franjo & Wahlroos, Mikko & Syri, Sanna & Pedersen, Allan Schrøder, 2018. "Influence of different technologies on dynamic pricing in district heating systems: Comparative case studies," Energy, Elsevier, vol. 153(C), pages 136-148.
    15. Ugis Sarma & Ugis Sarma & Girts Karnitis & Janis Zuters & Edvins Karnitis, 2019. "District heating networks: enhancement of the efficiency," Insights into Regional Development, VsI Entrepreneurship and Sustainability Center, vol. 1(3), pages 200-213, September.
    16. Volkova, Anna & Krupenski, Igor & Ledvanov, Aleksandr & Hlebnikov, Aleksandr & Lepiksaar, Kertu & Latõšov, Eduard & Mašatin, Vladislav, 2020. "Energy cascade connection of a low-temperature district heating network to the return line of a high-temperature district heating network," Energy, Elsevier, vol. 198(C).
    17. Egüez, Alejandro, 2020. "Energy Efficiency, District Heating and Waste Management," Umeå Economic Studies 979, Umeå University, Department of Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wissner, Matthias, 2014. "Regulation of district-heating systems," Utilities Policy, Elsevier, vol. 31(C), pages 63-73.
    2. Pažėraitė, Aušra & Lekavičius, Vidas & Gatautis, Ramūnas, 2022. "District heating system as the infrastructure for competition among producers in the heat market," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).
    3. Chilosi, David & Federico, Giovanni, 2015. "Early globalizations: The integration of Asia in the world economy, 1800–1938," Explorations in Economic History, Elsevier, vol. 57(C), pages 1-18.
    4. Söderholm, Patrik & Wårell, Linda, 2011. "Market opening and third party access in district heating networks," Energy Policy, Elsevier, vol. 39(2), pages 742-752, February.
    5. Chilosi, David & Murphy, Tommy E. & Studer, Roman & Tunçer, A. Coşkun, 2013. "Europe's many integrations: Geography and grain markets, 1620–1913," Explorations in Economic History, Elsevier, vol. 50(1), pages 46-68.
    6. Schmidt, Susanne K. & Werle, Raymund, 1992. "Koordination und Evolution: Technische Standards im Prozeß der Entwicklung technischer Systeme," MPIfG Discussion Paper 92/8, Max Planck Institute for the Study of Societies.
    7. Cassidy, Daniel & Hanley, Nick, 2020. "Regional market integration and the emergence of a Scottish national grain market," eabh Papers 20-05, The European Association for Banking and Financial History (EABH).
    8. Daniel Cassidy & Nick Hanley, 2022. "Union, border effects, and market integration in Britain," Working Papers 0228, European Historical Economics Society (EHES).
    9. Nicholas Economides, 1997. "The Economics of Networks," Brazilian Electronic Journal of Economics, Department of Economics, Universidade Federal de Pernambuco, vol. 1(0), December.
    10. Fenske, James & Kala, Namrata, 2021. "Linguistic Distance and Market Integration in India," The Journal of Economic History, Cambridge University Press, vol. 81(1), pages 1-39, March.
    11. Alexander Pütz & Pierre L. Siklos & Christoph Sulewski, 2019. "“Who pays the piper calls the tune” – Networks and transaction costs in commodity markets," CQE Working Papers 8819, Center for Quantitative Economics (CQE), University of Muenster.
    12. Egüez, Alejandro, 2020. "Ownership and district heating prices: The case of an unregulated natural monopoly," Umeå Economic Studies 980, Umeå University, Department of Economics.
    13. Torchio, Marco F. & Genon, Giuseppe & Poggio, Alberto & Poggio, Marco, 2009. "Merging of energy and environmental analyses for district heating systems," Energy, Elsevier, vol. 34(3), pages 220-227.
    14. Pier-Paolo Saviotti & Andreas Pyka, 2004. "Economic Development, Variety and Employment," Revue économique, Presses de Sciences-Po, vol. 55(6), pages 1023-1049.
    15. Martin Uebele & Daniel Gallardo-Albarr�n, 2015. "Paving the way to modernity: Prussian roads and grain market integration in Westphalia, 1821-1855," Scandinavian Economic History Review, Taylor & Francis Journals, vol. 63(1), pages 69-92, March.
    16. Biggar, Darryl & Söderberg, Magnus, 2020. "Empirical analysis of how political ideology and ownership influence price stability in the Swedish district heating market," Energy Policy, Elsevier, vol. 145(C).
    17. Heli Koski & Tobias Kretschmer, 2004. "Survey on Competing in Network Industries: Firm Strategies, Market Outcomes, and Policy Implications," Journal of Industry, Competition and Trade, Springer, vol. 4(1), pages 5-31, March.
    18. Sandberg, Eli & Sneum, Daniel Møller & Trømborg, Erik, 2018. "Framework conditions for Nordic district heating - Similarities and differences, and why Norway sticks out," Energy, Elsevier, vol. 149(C), pages 105-119.
    19. Zhang, Junli & Ge, Bin & Xu, Hongsheng, 2013. "An equivalent marginal cost-pricing model for the district heating market," Energy Policy, Elsevier, vol. 63(C), pages 1224-1232.
    20. Egüez, Alejandro, 2021. "District heating network ownership and prices: The case of an unregulated natural monopoly," Utilities Policy, Elsevier, vol. 72(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:90:y:2016:i:c:p:222-232. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.