Though financial players in commodity markets are expected to improve market performance, manipulation scandals and higher prices attributed to their trading have made their role controversial and lead to proposals to restrict their activity. This paper studies the case of the Midwest electricity market, which allows the participation of purely financial firms like most North American deregulated markets.
Areas of Focus: Energy Markets
Well-functioning markets are essential for providing access to reliable, affordable energy. EPIC research is uncovering the policies, prices and information needed to help energy markets work efficiently.