Quantifying multiscale inefficiency in electricity markets

A-Tier
Journal: Energy Economics
Year: 2008
Volume: 30
Issue: 6
Pages: 3109-3117

Authors (2)

Uritskaya, Olga Y. (not in RePEc) Serletis, Apostolos (University of Calgary)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

One of the basic features of efficient markets is the absence of correlations between price increments over any time scale leading to random walk-type behavior of prices. In this paper, we propose a new approach for measuring deviations from the efficient market state based on an analysis of scale-dependent fractal exponent characterizing correlations at different time scales. The approach is applied to two electricity markets, Alberta and Mid Columbia (Mid-C), as well as to the AECO Alberta natural gas market (for purposes of providing a comparison between storable and non-storable commodities). We show that price fluctuations in all studied markets are not efficient, with electricity prices exhibiting complex multiscale correlated behavior not captured by monofractal methods used in previous studies.

Technical Details

RePEc Handle
repec:eee:eneeco:v:30:y:2008:i:6:p:3109-3117
Journal Field
Energy
Author Count
2
Added to Database
2026-01-29