forward hedging and vertical integration are two separate mechanisms for demand and spot price risk diversification that both …' utility due to the asymmetry between production and retail segments. Vertical integration restores the symmetry between … forward hedging when retailers are highly risk averse. We illustrate our analysis with data from the French electricity market. …

futures contracts. Their hedging demand is met by financial intermediaries who act as speculators, but are constrained in risk …-taking. Increases (decreases) in producers’ hedging demand (the risk-bearing capacity of speculators) increase the costs of hedging … 1980-2006, we show that producers’ hedging demand - proxied by their default risk - forecasts spot prices, futures prices …

stochastic. It then uses the results to explain the dynamics of hedging. Bankruptcy rules are important determinants of corporate … produce the same prices, they can have very different hedging implications. We show that empirical results on the relation …

This paper uses a dynamic optimization model to estimate the welfare gains of hedging against commodity price risk for … commodity-exporting countries. We show that the introduction of hedging instruments such as futures and options enhances …

than costs, involves lowering coal subsidies and trade barriers. Past coal policies which encouraged excessive production …

proportional contributions to environmental indicators of changes in the level and composition of output, and changes in production …