Fuel price caps are one of the potential regulatory tools for controlling wholesale electricity prices when fuel prices are volatile. In this paper, we introduce a theoretical model to study the effects of such caps on firms’ bidding behavior and clearing prices in spot market auctions. We...

We examine the risk transmission mechanisms in the interconnected Australian National Electricity Market (NEM). We illustrate that the transmission of extreme events in terms of their magnitude (via skewness) and the likelihood of their occurrence (via kurtosis) should be considered when...

Reducing global carbon emissions and mitigating the adverse impacts of climate change is a fundamental environmental challenge. Australia's target is to reduce carbon emissions by between 26% and 28% by 2030 compared to 2005 emission levels. Carbon pricing can be an effective market-based...