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Delineation of Energy Markets with Cointegration Techniques

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Book cover The Econometrics of Energy Systems

Abstract

The question of market ‘frontiers’ is a constant issue in energy economics. The first and second oils shocks, during the 1970s, impacted national economies — to various degrees — in all OECD countries, resulting in a growing globalization of the oil markets or, at least, close links between regional markets. The move towards liberalization of energy markets, starting during the 1980s in the US and progressively reaching Europe, extended this process to all categories of energy and geographical markets. At the same time, improved availability of price information decreased transactions costs and also contributed to integrating energy markets even more than previously. These combined movements explain that research on the delineation of market boundaries and tests of the law of ‘one price’ are nowadays ‘classics’ in the field of energy economics.1

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Authors
  1. Régis Bourbonnais
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  2. Patrice Geoffron
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Editor information

Editors and Affiliations

  1. Centre de Géopolitique de l’Energie et des Matières Premières (CGEMP), Dauphine University, Paris, France

    Jan Horst Keppler (Professor of Economics, Senior Researcher) (Professor of Economics, Senior Researcher)

  2. Dauphine University, France

    Régis Bourbonnais (Assistant Professor) (Assistant Professor)

  3. Energy and Environmental Policy Group, LEPII Laboratory Grenoble, France

    Jacques Girod (Director of Research (CNRS) (Director of Research (CNRS)

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© 2007 Régis Bourbonnais and Patrice Geoffron

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Bourbonnais, R., Geoffron, P. (2007). Delineation of Energy Markets with Cointegration Techniques. In: Keppler, J.H., Bourbonnais, R., Girod, J. (eds) The Econometrics of Energy Systems. Palgrave Macmillan, London. https://doi.org/10.1057/9780230626317_8

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