000148918 001__ 148918 000148918 005__ 20250221175445.0 000148918 0247_ $$2doi$$a10.22004/ag.econ.148918 000148918 037__ $$a830-2016-55305 000148918 041__ $$aeng 000148918 084__ $$aQ43 000148918 084__ $$aG15 000148918 084__ $$aG02 000148918 084__ $$aD81 000148918 245__ $$aHeterogeneous Beliefs, Regret, and Uncertainty: The Role of Speculation in Energy Price Dynamics 000148918 260__ $$c2013-04 000148918 269__ $$a2013-04 000148918 270__ $$mmarc.joets@u-paris10.fr$$pJoëts, Marc 000148918 300__ $$a45 000148918 336__ $$aWorking or Discussion Paper 000148918 490__ $$aERM 000148918 490__ $$a32.2013 000148918 520__ $$aThis paper proposes to investigate the impact of financialization on energy markets (oil, gas, coal and electricity European forward prices) during both normal times and extreme fluctuation periods through an original behavioral and emotional approach. To this aim, we propose a new theoretical and empirical framework based on a heterogeneous agents model in which fundamentalists and chartists co-exist and are subject to regret and uncertainty. We find significant evidence that energy markets are composed by heterogeneous traders which behave differently depending on the intensity of the price fluctuations and uncertainty context. In particular, energy prices are mainly governed by fundamental and chartist neutral agents during normal times whereas they face to irrational chartist averse investors during extreme fluctuations periods. In this context, the recent energy prices surge can be viewed as the consequence of irrational exhuberance. Our new theoretical model outperforms the random walk in out-of-sample predictive ability. 000148918 546__ $$aEnglish 000148918 650__ $$aEnvironmental Economics and Policy 000148918 650__ $$aResource/Energy Economics and Policy 000148918 6531_ $$aEnergy Forward Prices 000148918 6531_ $$aFinancialization 000148918 6531_ $$aHeterogeneous Agents 000148918 6531_ $$aUncertainty Aversion 000148918 6531_ $$aRegret 000148918 700__ $$aJoëts, Marc 000148918 8564_ $$955322d33-feab-4c93-b1d1-014578c19889$$s1065944$$uhttps://ageconsearch.umn.edu/record/148918/files/NDL2013-032.pdf 000148918 887__ $$ahttp://purl.umn.edu/148918 000148918 909CO $$ooai:ageconsearch.umn.edu:148918$$pGLOBAL_SET 000148918 912__ $$nSubmitted by Nancy Elera (nancy.elera@feem.it) on 2013-05-10T08:21:17Z No. of bitstreams: 1 NDL2013-032.pdf: 1065944 bytes, checksum: ffb14e156d0c33def058b3a2f09732ee (MD5) 000148918 912__ $$nMade available in DSpace on 2013-05-10T08:21:19Z (GMT). No. of bitstreams: 1 NDL2013-032.pdf: 1065944 bytes, checksum: ffb14e156d0c33def058b3a2f09732ee (MD5) Previous issue date: 2013-04 000148918 913__ $$aLicense granted by Nancy Elera (nancy.elera@feem.it) on 2013-05-10T08:10:37Z (GMT): <center> <h2> Deposit Agreement </h2> </center> I represent that I am the creator of the digital material identified herein (&ldquo;Work&rdquo;). I represent that the work is original and that I either own all rights of copyright or have the right to deposit the copy in a digital archive such as AgEcon Search. I represent that in regard to any non-original material included in the Work I have secured written permission of the copyright owner (s) for this use or believe this use is allowed by law. I further represent that I have included all appropriate credits and attributions. I hereby grant the Regents of the University of Minnesota (&ldquo;University&rdquo;), through AgEcon Search, a non-exclusive right to access, reproduce, and distribute the Work, in whole or in part, for the purposes of security, preservation, and perpetual access. I grant the University a limited, non-exclusive right to make derivative works for the purpose of migrating the Work to other media or formats in order to preserve access to the Work. I do not transfer or intend to transfer any right of copyright or other intellectual property to the University. If the Deposit Agreement is executed by the Author�s Representative, the Representative shall separately execute the following representation: I represent that I am authorized by the Author to execute this Deposit Agreement on behalf of the Author. 000148918 980__ $$a830 000148918 982__ $$gFondazione Eni Enrico Mattei (FEEM)>Energy: Resources and Markets