Removing Cross-Border Capacity Bottlenecks in the European Natural Gas Market – A Proposed Merchant-Regulatory Mechanism
| dc.contributor.author | NEUMANN, Anne | |
| dc.contributor.author | ROSELLÓN, Juan | |
| dc.contributor.author | WEIGT, Hannes | |
| dc.date.accessioned | 2012-01-25T17:52:06Z | |
| dc.date.available | 2012-01-25T17:52:06Z | |
| dc.date.issued | 2011 | |
| dc.description | This publication is based on research carried out in the frame work of the Florence School of Regulation of the Robert Schuman Centre for Advanced Studies, European University Institute. | |
| dc.description.abstract | We propose a merchant-regulatory framework to promote investment in the European natural gas network infrastructure based on a price cap over two-part tariffs. As suggested by Vogelsang (2001) and Hogan et al. (2010), a profit maximizing network operator facing this regulatory constraint will intertemporally rebalance the variable and fixed part of its two-part tariff so as to expand the congested pipelines, and converge to the Ramsey-Boiteaux equilibrium. We confirm this with actual data from the European natural gas market by comparing the bi-level price-cap model with a base case, a no-regulation case, and a welfare benchmark case, and by performing sensitivity analyses. In all cases, the incentive model is the best decentralized regulatory alternative that efficiently develops the European pipeline system. | |
| dc.identifier.doi | 10.2139/ssrn.1898562 | |
| dc.identifier.uri | https://hdl.handle.net/1814/20103 | |
| dc.language.iso | en | |
| dc.relation.ispartofseries | DIW Berlin Discussion Paper | en |
| dc.relation.ispartofseries | 2011/1145 | en |
| dc.relation.ispartofseries | [Florence School of Regulation] | en |
| dc.relation.ispartofseries | [Gas] | en |
| dc.title | Removing Cross-Border Capacity Bottlenecks in the European Natural Gas Market – A Proposed Merchant-Regulatory Mechanism | en |
| dc.type | Working Paper | en |
| dspace.entity.type | Publication | |
| eui.subscribe.skip | true | |
| person.identifier.other | 33758 | |
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