Price convergence in the Central American regional electricity market

Autores
Cont, Walter Alberto; Barril, Diego; Carbó, Agustín
Año de publicación
2021
Idioma
inglés
Tipo de recurso
documento de conferencia
Estado
versión publicada
Descripción
After 7 years since the formalization of the regional electricity market (MER, according to the Spanish acronym) in Central America, operating in a parallel fashion with domestic markets, we study the evolution of spot prices to understand whether the MER allowed for price convergence in the transactions that took place among countries. We use a test proposed by Phillips and Sul (Econometrica, 2007) to run the convergence test and find that long term forces are in effect, interrupted temporarily in mid-2016 after the introduction of a hydroelectric plant (Reventazon) in Costa Rica. This convergence result is accompanied by indirect evidence of a reduction in the level of spot prices during the period (after having considered the cost of fuels or natural gas).
Luego de 7 años desde la formalización del Mercado Eléctrico Regional (MER) en Centroamérica, este paper estudia la evolución de los precios spot para entender si se produjo una convergencia entre los países que forman parte del MER. Utilizando una prueba propuesta por Phillips y Sul (Econometrica, 2007) para ejecutar el test de convergencia, se puede concluir que las fuerzas de largo plazo hacia un precio único han operado, habiendo sufrido una interrupción temporal a mediados de 2016 después de la introducción de una planta hidroeléctrica (Reventazón) en Costa Rica. Este resultado de convergencia va acompañado de evidencia indirecta de una reducción en el nivel de precios spot durante el período (después de haber considerado el costo de los combustibles o del gas natural).
Facultad de Ciencias Económicas
Materia
Ciencias Económicas
Electricity prices
price convergence
SIEPAC
Regional Electricity Market
Nivel de accesibilidad
acceso abierto
Condiciones de uso
http://creativecommons.org/licenses/by-nc-sa/4.0/
Repositorio
SEDICI (UNLP)
Institución
Universidad Nacional de La Plata
OAI Identificador
oai:sedici.unlp.edu.ar:10915/170239
Acceder
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network_name_str SEDICI (UNLP)
spelling Price convergence in the Central American regional electricity marketCont, Walter AlbertoBarril, DiegoCarbó, AgustínCiencias EconómicasElectricity pricesprice convergenceSIEPACRegional Electricity MarketAfter 7 years since the formalization of the regional electricity market (MER, according to the Spanish acronym) in Central America, operating in a parallel fashion with domestic markets, we study the evolution of spot prices to understand whether the MER allowed for price convergence in the transactions that took place among countries. We use a test proposed by Phillips and Sul (Econometrica, 2007) to run the convergence test and find that long term forces are in effect, interrupted temporarily in mid-2016 after the introduction of a hydroelectric plant (Reventazon) in Costa Rica. This convergence result is accompanied by indirect evidence of a reduction in the level of spot prices during the period (after having considered the cost of fuels or natural gas).Luego de 7 años desde la formalización del Mercado Eléctrico Regional (MER) en Centroamérica, este paper estudia la evolución de los precios spot para entender si se produjo una convergencia entre los países que forman parte del MER. Utilizando una prueba propuesta por Phillips y Sul (Econometrica, 2007) para ejecutar el test de convergencia, se puede concluir que las fuerzas de largo plazo hacia un precio único han operado, habiendo sufrido una interrupción temporal a mediados de 2016 después de la introducción de una planta hidroeléctrica (Reventazón) en Costa Rica. Este resultado de convergencia va acompañado de evidencia indirecta de una reducción en el nivel de precios spot durante el período (después de haber considerado el costo de los combustibles o del gas natural).Facultad de Ciencias Económicas2021-11info:eu-repo/semantics/conferenceObjectinfo:eu-repo/semantics/publishedVersionObjeto de conferenciahttp://purl.org/coar/resource_type/c_5794info:ar-repo/semantics/documentoDeConferenciaapplication/pdfhttp://sedici.unlp.edu.ar/handle/10915/170239enginfo:eu-repo/semantics/altIdentifier/url/https://bd.aaep.org.ar/anales/works/works2021/cont_2021a.pdfinfo:eu-repo/semantics/altIdentifier/issn/1852-0022info:eu-repo/semantics/openAccesshttp://creativecommons.org/licenses/by-nc-sa/4.0/Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0)reponame:SEDICI (UNLP)instname:Universidad Nacional de La Platainstacron:UNLP2025-09-10T12:46:04Zoai:sedici.unlp.edu.ar:10915/170239Institucionalhttp://sedici.unlp.edu.ar/Universidad públicaNo correspondehttp://sedici.unlp.edu.ar/oai/snrdalira@sedici.unlp.edu.arArgentinaNo correspondeNo correspondeNo correspondeopendoar:13292025-09-10 12:46:04.561SEDICI (UNLP) - Universidad Nacional de La Platafalse
dc.title.none.fl_str_mv Price convergence in the Central American regional electricity market
title Price convergence in the Central American regional electricity market
spellingShingle Price convergence in the Central American regional electricity market
Cont, Walter Alberto
Ciencias Económicas
Electricity prices
price convergence
SIEPAC
Regional Electricity Market
title_short Price convergence in the Central American regional electricity market
title_full Price convergence in the Central American regional electricity market
title_fullStr Price convergence in the Central American regional electricity market
title_full_unstemmed Price convergence in the Central American regional electricity market
title_sort Price convergence in the Central American regional electricity market
dc.creator.none.fl_str_mv Cont, Walter Alberto
Barril, Diego
Carbó, Agustín
author Cont, Walter Alberto
author_facet Cont, Walter Alberto
Barril, Diego
Carbó, Agustín
author_role author
author2 Barril, Diego
Carbó, Agustín
author2_role author
author
dc.subject.none.fl_str_mv Ciencias Económicas
Electricity prices
price convergence
SIEPAC
Regional Electricity Market
topic Ciencias Económicas
Electricity prices
price convergence
SIEPAC
Regional Electricity Market
dc.description.none.fl_txt_mv After 7 years since the formalization of the regional electricity market (MER, according to the Spanish acronym) in Central America, operating in a parallel fashion with domestic markets, we study the evolution of spot prices to understand whether the MER allowed for price convergence in the transactions that took place among countries. We use a test proposed by Phillips and Sul (Econometrica, 2007) to run the convergence test and find that long term forces are in effect, interrupted temporarily in mid-2016 after the introduction of a hydroelectric plant (Reventazon) in Costa Rica. This convergence result is accompanied by indirect evidence of a reduction in the level of spot prices during the period (after having considered the cost of fuels or natural gas).
Luego de 7 años desde la formalización del Mercado Eléctrico Regional (MER) en Centroamérica, este paper estudia la evolución de los precios spot para entender si se produjo una convergencia entre los países que forman parte del MER. Utilizando una prueba propuesta por Phillips y Sul (Econometrica, 2007) para ejecutar el test de convergencia, se puede concluir que las fuerzas de largo plazo hacia un precio único han operado, habiendo sufrido una interrupción temporal a mediados de 2016 después de la introducción de una planta hidroeléctrica (Reventazón) en Costa Rica. Este resultado de convergencia va acompañado de evidencia indirecta de una reducción en el nivel de precios spot durante el período (después de haber considerado el costo de los combustibles o del gas natural).
Facultad de Ciencias Económicas
description After 7 years since the formalization of the regional electricity market (MER, according to the Spanish acronym) in Central America, operating in a parallel fashion with domestic markets, we study the evolution of spot prices to understand whether the MER allowed for price convergence in the transactions that took place among countries. We use a test proposed by Phillips and Sul (Econometrica, 2007) to run the convergence test and find that long term forces are in effect, interrupted temporarily in mid-2016 after the introduction of a hydroelectric plant (Reventazon) in Costa Rica. This convergence result is accompanied by indirect evidence of a reduction in the level of spot prices during the period (after having considered the cost of fuels or natural gas).
publishDate 2021
dc.date.none.fl_str_mv 2021-11
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status_str publishedVersion
dc.identifier.none.fl_str_mv http://sedici.unlp.edu.ar/handle/10915/170239
url http://sedici.unlp.edu.ar/handle/10915/170239
dc.language.none.fl_str_mv eng
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info:eu-repo/semantics/altIdentifier/issn/1852-0022
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eu_rights_str_mv openAccess
rights_invalid_str_mv http://creativecommons.org/licenses/by-nc-sa/4.0/
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repository.name.fl_str_mv SEDICI (UNLP) - Universidad Nacional de La Plata
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