Work

An Empirical Investigation of Explosive Price Behavior in U.S. State-Level Electricity Markets Across Consumer Segments

Year: 2025

Type: article

Abstract: This study investigates speculative bubbles in U.S. state-level electricity markets across commercial, industrial, and residential segments. Using monthly data (2005–2025) from the U.S. Energy Information Administration and employing the Generalized Supremum Augmented Dickey–Fuller test, evidence of localized explosive price behavior was observed predominantly in Florida, Hawaii, Pennsylvania, and Oregon, among others. These bubbles, often tied to market disruptions such as fuel price volatility and post-pandemic recovery, were mainly short-lived and region-specific. The findings highlight the need for tailored, state-specific regulatory strategies to address unique market dynamics, ensuring stability amidst the ongoing energy transition.

Source: Energies

DOI: 10.3390/en18215689

Authors: Merve Mert Saritas, Gokhan Konat, Levent Dalyanci, Veli Yilanci

Institutions: Çanakkale Onsekiz Mart Üniversitesi, Bolu Abant İzzet Baysal University

Language: English

Topic: Market Dynamics and Volatility

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Affordable and clean energy

Open Access status: gold

Estimated APC paid: $3,137