Fuel inventory and price relationships in the US electric power sector under regulatory and market change Academic Article

abstract

• 2017, Springer Science+Business Media New York. Long-run relationships among coal inventories at U.S. electric power plants, corporate bond rates and coal, natural gas, and electricity prices are estimated over the period July 1976 to October 2014. Tests for constancy of the long-run relationships show periods of instability which coincide with major regulatory events in the electric power sector. Deregulation of the natural gas and electricity markets are likely sources of instability for the period mid-1994 to mid-2001. Additionally, inventory behavior may have had a smoothing effect over instability caused by natural gas prices during the recent U.S. shale boom. Policy makers should be aware that altering the regulatory environment can result in considerable fluctuations in how firms inventory decisions interact with input and output markets and opportunity costs in the long run.

authors

• Mjelde, James

published proceedings

• JOURNAL OF REGULATORY ECONOMICS

author list (cited authors)

• Binder, K. E., & Mjelde, J. W.

citation count

• 4

complete list of authors

• Binder, Kyle E||Mjelde, James W

publication date

• January 2017

publisher

• Springer Nature  Publisher

published in

• Journal of Regulatory Economics  Journal

keywords

• Electricity Sector
• Inventory Behavior
• Policy Change
• Vecm

Digital Object Identifier (DOI)

• 10.1007/s11149-017-9319-9

start page

• 197

end page

• 219

volume

• 51

issue

• 2

URL

• http%3A%2F%2Fdx.doi.org%2F10.1007%2Fs11149-017-9319-9