This study investigates the correlation between wholesale electricity spot market prices and carbon costs in nine Japanese regions using the carbon cost pass-through rate (CPTR). Polynomial OLS regression and a generalized additive model were employed to analyze the relationship between electricity price, demand, and fuel spread with carbon cost. Results indicate varying CPTRs across regions, with some exhibiting higher rates (consumers bearing more burden) and others showing lower rates (producers bearing more burden). Hokkaido presents a unique case with a negative relationship between electricity price and carbon cost.
Publisher
HUMANITIES AND SOCIAL SCIENCES COMMUNICATIONS
Published On
Oct 06, 2022
Authors
Ding Ding
Tags
electricity prices
carbon costs
Japan
CPTR
wholesale market
regression analysis
Hokkaido
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