Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/171681
Authors: 
Abrell, Jan
Weigt, Hannes
Year of Publication: 
2016
Series/Report no.: 
Economics Working Paper Series 16/238
Abstract: 
Electricity markets depend on upstream energy markets to supply the fuels needed for generation. Since these markets rely on networks, congestion in one can quickly produce changes in another. In this paper we develop a combined partial equilibrium market model which includes the interactions of natural gas and electricity networks. We apply the model to a stylized representation of Europe’s electricity and natural gas markets to illustrate the upstream and downstream feedback effects which are not obvious on first sight. We find that both congestion and loop-flow effects in electricity markets impact prices and quantities in markets located far from the initial cause of the market changes.
Subjects: 
Electricity network
Natural gas network
Europe
MCP
JEL: 
L94
L95
C63
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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