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A Multivariate Dependence Analysis for Electricity Prices, Demand and Renewable Energy Sources

Fabrizio Durante, Angelica Gianfreda, Francesco Ravazzolo, Luca Rossini

arXiv 4 Jan 2022 · Statistics — Applications · publishedInformation Sciences (2022) · 30 citations (OpenAlex)

arXiv:2201.01132 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper examines the dependence between electricity prices, demand, and renewable energy sources by means of a multivariate copula model {while studying Germany, the widest studied market in Europe}. The inter-dependencies are investigated in-depth and monitored over time, with particular emphasis on the tail behavior. To this end, suitable tail dependence measures are introduced to take into account a multivariate extreme scenario appropriately identified {through the} Kendall's distribution function. The empirical evidence demonstrates a strong association between electricity prices, renewable energy sources, and demand within a day and over the studied years. Hence, this analysis provides guidance for further and different incentives for promoting green energy generation while considering the time-varying dependencies of the involved variables

Citation extraction

48
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61
in-text mentions
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distinct cited
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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Patton, A. J (2012) A review of copula models for economic time series0.64441100%
2Bernardi, M., F. Durante, P. Jaworski, L. Petrella, and G. Salvadori (2018) Conditional risk based on multivariate hazard scenarios0.64422100%
3Nappo, G. and F. Spizzichino (2009) Kendall distributions and level sets in bivariate exchangeable survival models0.64422100%
4Pircalabu, A., T. Hvolby, J. Jung, and E. Hg (2017) Joint price and volumetric risk in wind power trading: A copula approach0.64422100%
5Salvadori, G., C. De Michele, and F. Durante (2011) On the return period and design in a multivariate framework0.64422100%
6Czado, C (2019) Analyzing dependent data with vine copulas. A practical guide with R, Volume 2220.58531100%
7Durante, F. and C. Sempi (2016) Principles of Copula Theory self0.58531100%
8Durante, F., J. Fernández-Sánchez, and R. Pappadà (2015) Copulas, diagonals and tail dependence self0.51121100%
9Hofert, M., W. Oldford, A. Prasad, and M. Zhu (2019) A framework for measuring association of random vectors via collapsed random variables0.51121100%
10Aas, K (2016) Pair-copula constructions for financial applications: A review0.40511100%

Showing the top 10 of 48 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1Modeling European Electricity Market Integration during turbulent times0.40511