A Speculative Trading Model for the Electricity Market: Based on Japan Electric Power Exchange
Renewable energy sources produce less environmental impact and have little marginal cost. Thus, because of these characteristics, it is desirable to disseminate it for the purpose of economic efficiency. Because of the uncertainty in the supply of renewable energy and the special feature of electric...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2019-07-01
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| Series: | Energies |
| Subjects: | |
| Online Access: | https://www.mdpi.com/1996-1073/12/15/2946 |
| _version_ | 1798039498000433152 |
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| author | Jun Maekawa Koji Shimada |
| author_facet | Jun Maekawa Koji Shimada |
| author_sort | Jun Maekawa |
| collection | DOAJ |
| description | Renewable energy sources produce less environmental impact and have little marginal cost. Thus, because of these characteristics, it is desirable to disseminate it for the purpose of economic efficiency. Because of the uncertainty in the supply of renewable energy and the special feature of electricity as a good, such as merit order curve, introducing forward markets is an essential factor in a liberalized market. In European countries, which have already established several mechanisms for managing liquidity including markets with several timelines, the market liquidity invites the investor to perform some speculative action. We present a simple electric power market model to analyze the speculative actions of electricity suppliers and the price effect of such actions. Moreover, we found that the speculative action improves the inelasticity of the demand in electricity market. |
| first_indexed | 2024-04-11T21:54:42Z |
| format | Article |
| id | doaj.art-284ce4f4730d4aa4a96637ad561d0e0b |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-04-11T21:54:42Z |
| publishDate | 2019-07-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-284ce4f4730d4aa4a96637ad561d0e0b2022-12-22T04:01:09ZengMDPI AGEnergies1996-10732019-07-011215294610.3390/en12152946en12152946A Speculative Trading Model for the Electricity Market: Based on Japan Electric Power ExchangeJun Maekawa0Koji Shimada1Ritsumeikan Global Innovation Research Organization (R-GIRO), Ritsumeikan University, 1-1-1 Noji-higashi, Kusatsu, Shiga 525-8577, JapanFaculty of Economics, Ritsumeikan University, 1-1-1 Noji-higashi, Kusatsu, Shiga 525-8577, JapanRenewable energy sources produce less environmental impact and have little marginal cost. Thus, because of these characteristics, it is desirable to disseminate it for the purpose of economic efficiency. Because of the uncertainty in the supply of renewable energy and the special feature of electricity as a good, such as merit order curve, introducing forward markets is an essential factor in a liberalized market. In European countries, which have already established several mechanisms for managing liquidity including markets with several timelines, the market liquidity invites the investor to perform some speculative action. We present a simple electric power market model to analyze the speculative actions of electricity suppliers and the price effect of such actions. Moreover, we found that the speculative action improves the inelasticity of the demand in electricity market.https://www.mdpi.com/1996-1073/12/15/2946electricity marketspeculative tradingforward market |
| spellingShingle | Jun Maekawa Koji Shimada A Speculative Trading Model for the Electricity Market: Based on Japan Electric Power Exchange Energies electricity market speculative trading forward market |
| title | A Speculative Trading Model for the Electricity Market: Based on Japan Electric Power Exchange |
| title_full | A Speculative Trading Model for the Electricity Market: Based on Japan Electric Power Exchange |
| title_fullStr | A Speculative Trading Model for the Electricity Market: Based on Japan Electric Power Exchange |
| title_full_unstemmed | A Speculative Trading Model for the Electricity Market: Based on Japan Electric Power Exchange |
| title_short | A Speculative Trading Model for the Electricity Market: Based on Japan Electric Power Exchange |
| title_sort | speculative trading model for the electricity market based on japan electric power exchange |
| topic | electricity market speculative trading forward market |
| url | https://www.mdpi.com/1996-1073/12/15/2946 |
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