Research Department Working Papers
What Fuels the Volatility of Electricity Prices?
No. 2408
Abstract: We use emergency outages of coal generators as an exogenous source of variation in the power generation stack to study how changes in marginal fuel affect real-time prices. Contrary to anecdotal evidence, we find that wholesale prices are less volatile when natural gas is on the margin more often.
DOI: https://doi.org/10.24149/wp2408