Discussion Paper Series in Economics, Department of Economics, Norwegian School of Economics (NHH)
Grant R. McDermott
Electricity Prices, River Temperatures and Cooling Water Scarcity.
() and Řivind A. Nilsen
Abstract: Thermal-based power stations rely on water for cooling
purposes. These water sources may be subject to incidents of scarcity,
environmental regulations and competing economic concerns. This paper
analyses the effect of water scarcity and increased river temperatures on
German electricity prices from 2002 to 2009. Having controlled for demand
effects, the results indicate that the electricity price is significantly
impacted by both a change in river temperatures and the relative abundance
of river water. An implication is that future climate change will affect
electricity prices not only through changes in demand, but also via
increased water temperatures and scarcity.
Keywords: Thermal-based power; water scarcity.; (follow links to similar papers)
JEL-Codes: Q25; Q41; (follow links to similar papers)
29 pages, September 22, 2011
Before downloading any of the electronic versions below
you should read our statement on
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
DWSDownload.aspx?File=%2f ... on+papers%2f2011%2f18.pdf
Questions (including download problems) about the papers in this series should be directed to Dagny Hanne Kristiansen ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Design by Joachim Ekebom