forward hedging and vertical integration are two separate mechanisms for demand and spot price risk diversification that both …' utility due to the asymmetry between production and retail segments. Vertical integration restores the symmetry between … forward hedging when retailers are highly risk averse. We illustrate our analysis with data from the French electricity market. …

electricity production using the power derivatives available at NASDAQ OMX Commodities. In their hedging policy, these companies …We analyze risk management trends in electricity commodity markets using the production and transaction data and … written hedging policies of 12 Norwegian hydropower companies. The scope of our analysis is the hedging of physical …

This paper examines the production and futures hedging decisions of the competitive firm under output price uncertainty … and with state-dependent background risk. We show that the firm's optimal production decision is independent of the … the firm optimally includes the options in its hedge position. Hence, we offer a rationale for the hedging role of options …

This article examines hedging in South African stock index futures market. The hedge ratios are estimated by six … that the ECM-GARCH model (capturing volatility clustering) provides best hedging ratios, while CCC-ARCH is superior to OLS …