A Contemporaneous Model of Electricity Market Interaction with Energy Stock Market Sectors

The motivation for this paper is to provide a methodology for tracking electricity market liberalization for policymakers and investors. The significance of country energy sector price changes in electricity price changes is evident in all countries studied, but the explanatory power varies. Even so, it is evident that the regulatory environmental impact on electricity pricing and in some cases elements of renewables costing would dominate the models, but these factors are embedded in the residuals.