Publication details

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

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Authors

HAUGOM Erik LYÓCSA Štefan HALOUSKOVÁ Martina

Year of publication 2024
Type Article in Periodical
MU Faculty or unit

Faculty of Economics and Administration

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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