Renewables diffusion and contagion effect in Italian regional electricity markets: Assessment and policy implications

In this paper we investigate whether such a renewable energy increase has affected the contagion behavior in the Italian electricity spot market taking into account both the difference between interdependence and contagion and the direction of the shock. We find empirical evidence, with significant tests, that no changes have occurred in interdependence mechanism, nor in contagion effects due to renewable energy sources development in Italy.