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Radioinactive: Are nuclear power plant outages in France contagious to the German electricity price?

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  • Rinne, Sonja
Abstract
Are nuclear power plant outages in France contagious to the German electricity price? In the case of the extensive inspections from October 2016 to February 2017 in 12 French nuclear power plants: Yes. This capacity shock increased the French electricity spot market price by 14.15 Euros per MWh. The German-Austrian electricity spot market price was affected, with an increase of 1.72 Euros per MWh through cross-border trade. Hence, the current market integration between France and Germany to balance supply and demand in times of capacity shocks is limited. These results derive from a quasi-experimental approach based on coarsened exact matching. Thereby, the exogenous nature of the capacity shock is exploited as a random treatment in order to identify causal effects.

Suggested Citation

  • Rinne, Sonja, 2018. "Radioinactive: Are nuclear power plant outages in France contagious to the German electricity price?," CIW Discussion Papers 3/2018, University of Münster, Center for Interdisciplinary Economics (CIW).
    • Handle: RePEc:zbw:ciwdps:32018
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    1. Sapio, Alessandro, 2019. "Greener, more integrated, and less volatile? A quantile regression analysis of Italian wholesale electricity prices," Energy Policy, Elsevier, vol. 126(C), pages 452-469.

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    More about this item

    Keywords

    electricity price; electricity trade; nuclear power; market integration;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • F15 - International Economics - - Trade - - - Economic Integration
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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