The tipping point of electricity price attention: When a problem becomes a problem
| Authors | |
|---|---|
| Year of publication | 2024 |
| Type | Article in Periodical |
| Magazine / Source | Economics Letters |
| MU Faculty or unit | |
| Citation | |
| Web | https://www.sciencedirect.com/science/article/pii/S0165176524000314 |
| Doi | http://dx.doi.org/10.1016/j.econlet.2024.111547 |
| Keywords | Electricity price; Electricity price volatility; Attention; Norway; Twitter |
| Description | 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. |
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