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ID168688
Title ProperAsymmetric price transmission in the Hungarian retail electricity market
LanguageENG
AuthorSzőke, Tamás
Summary / Abstract (Note)The article compares the market power of Hungarian electricity traders during the partially liberalised transitional market model from 2004 to 2008 and the fully liberalised period lasting since 2008. In our empirical work, we use an econometric modelling technique based on asymmetric price transmission (APT) theory to measure the market power of traders in the electricity market. The aim of our work is to conduct a quantitative analysis of the Hungarian electricity trading market by applying the APT modelling technique – used widely in agro-economic analyses – to electricity markets. The intuition behind the method is the assumption that asymmetric price transmission refers to deviations from perfect competition. The research has found that different regulation regimes lead to different patterns of asymmetry in price transmission and the results underline that the market position of electricity traders have improved since the introduction of the liberalised market model. By mapping the results of the APT model to the actual policy and market changes we argue that the APT method is a useful tool for analysing the competition on electricity markets.
`In' analytical NoteEnergy Policy, No.133; Oct 2019: p.110879
Journal SourceEnergy Policy 2019-10
Key WordsHungary ;  Econometrics ;  Electricity ;  Price Transmission ;  Market Power ;  Vertical Integration