Wind generation has become the dominant causal driver of Texas day-ahead electricity prices with effects more than three times larger than natural gas prices, while gas influence persists modestly and varies by benchmark and region.
Testing for causality: A personal viewpoint.Journal of Economic Dynamics and Control 2, 329–352 (1980)
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Mapping the causal structure of price formation in Texas's transitioning electricity market
Wind generation has become the dominant causal driver of Texas day-ahead electricity prices with effects more than three times larger than natural gas prices, while gas influence persists modestly and varies by benchmark and region.