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Does market concentration affect wholesale electricity prices? An analysis of the Indian electricity sector in the COVID-19 pandemic context

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  • Pradhan, Ashis Kumar
  • Rout, Sandhyarani
  • Khan, Imran Ahmed

Abstract

This study explores whether the market concentration affects the wholesale prices of electricity generation among Indian companies by drawing 15-min frequency data related to electricity production, wholesale prices, and electricity demand in August 2020 during the COVID-19 pandemic. The ARDL model estimates show a positive relationship between market concentration and wholesale energy prices. The study recommends the adoption of policies to reduce market concentration and enhance clean energy development.

Suggested Citation

  • Pradhan, Ashis Kumar & Rout, Sandhyarani & Khan, Imran Ahmed, 2021. "Does market concentration affect wholesale electricity prices? An analysis of the Indian electricity sector in the COVID-19 pandemic context," Utilities Policy, Elsevier, vol. 73(C).
    • Handle: RePEc:eee:juipol:v:73:y:2021:i:c:s0957178721001399
    DOI: 10.1016/j.jup.2021.101305
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    Cited by:

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    3. Guru, Biplab Kumar & Pradhan, Ashis Kumar & Bandaru, Ramakrishna, 2023. "Volatility contagion between oil and the stock markets of G7 countries plus India and China," Resources Policy, Elsevier, vol. 81(C).

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    More about this item

    Keywords

    Market concentration; Electricity generation; Energy prices;
    All these keywords.

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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