The tipping point of electricity price attention: When a problem becomes a problem

HAUGOM, Erik, Štefan LYÓCSA and Martina HALOUSKOVÁ. The tipping point of electricity price attention: When a problem becomes a problem. Economics Letters. LAUSANNE: ELSEVIER SCIENCE SA, 2024, vol. 235, 5 pp. ISSN 0165-1765. Available from: https://dx.doi.org/10.1016/j.econlet.2024.111547.

Basic information

• Original name: The tipping point of electricity price attention: When a problem becomes a problem
• Authors: HAUGOM, Erik, Štefan LYÓCSA and Martina HALOUSKOVÁ.
• Edition: Economics Letters, LAUSANNE, ELSEVIER SCIENCE SA, 2024, 0165-1765.

Other information

• Original language: English
• Type of outcome: Article in a journal
• Field of Study: 50206 Finance
• Country of publisher: Switzerland
• Confidentiality degree: is not subject to a state or trade secret
• WWW: URL
• Impact factor: Impact factor: 2.000 in 2022
• Organization unit: Faculty of Economics and Administration
• Doi: http://dx.doi.org/10.1016/j.econlet.2024.111547
• UT WoS: 001172643400001
• Keywords in English: Electricity price; Electricity price volatility; Attention; Norway; Twitter
• Tags: International impact, Reviewed

Abstract

We study the relationship between Norwegian electricity prices and the public's attention towards these using data from i) all Norwegian newspapers, ii) Norwegian Tweets, and iii) (Norwegian) Google searches over a sample period from 2014-2022. Our results suggest that attention is non-linearly related to both the electricity price level and its volatility. Using threshold auto -regressive models, we estimate 'tipping points' for all attention measures in the e50-60/MWh range. The results have important policy implications, pointing to specific price levels for which society becomes increasingly concerned about electricity prices.

Links

• GA22-27075S, research and development project: Name: Předpovídání tržního rizika: Role obchodní aktivity, pozornosti a sentimentu

Investor: Czech Science Foundation