We are going to analyze the relationship between electricity price and the dynamics of demand and supply. Generally, higher demand is expected to correlate with increased electricity price. Based on the hourly electricity data provided by NY state, we will examine how wholesale price fluctuates in response to demand shifts.
Another factor influencing price is the fuel mix. When a larger scale of electricity is generated from fossil fuels, price become increasingly sensitive to volatility in global energy markets, such as oil and natural gas.
Futhermore, we also focus on the environmental externalities of energy consumption, analyzing its impact on indicators such as air quality.
