Engineering
4 years ago

Risk-loving electricity consumers save more on energy costs with new strategy.

RePEc: Research Papers in Economics
Hedging Exposure to Electricity Price Risk in a Value at Risk Framework
Ronald Huisman, Ronald Mahieu, Felix Schlichter

Paper Summary

The article discusses how companies can reduce risks from changing electricity prices by using energy contracts. By analyzing German market data, it shows that taking more risks can lead to lower costs for buying electricity in the future.

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