IDEAS home Printed from https://ideas.repec.org/a/aen/journl/ej39-2-hinchey.html
   My bibliography  Save this article

The Impact of Securing Alternative Energy Sources on Russian-European Natural Gas Pricing

Author

Listed:
  • Nathalie Hinchey

Abstract

This paper examines the effects of procuring alternative sources of natural gas on Russian pricing in Europe. With the increasing presence of LNG import capability in European ports, this topic is growing in importance, especially for European policy makers. Theoretical results, stemming from an asymmetric Nash Bargaining model, suggest that Russian prices decrease as dependency on Russian gas decreases. The empirical results, obtained from the estimation of a correlated random effects model, corroborate this stipulation by finding a positive relationship between Russian pricing and average dependency on Russian supplied gas. These findings explain the recent phenomenon experienced in the Baltic Region where the presence of an LNG import terminal in Lithuania has secured access to non-Russian suppliers of gas and decreased prices from Gazprom.

Suggested Citation

  • Nathalie Hinchey, 2018. "The Impact of Securing Alternative Energy Sources on Russian-European Natural Gas Pricing," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
    • Handle: RePEc:aen:journl:ej39-2-hinchey
    as

    Download full text from publisher

    File URL: http://www.iaee.org/en/publications/ejarticle.aspx?id=3053
    Download Restriction: Access to full text is restricted to IAEE members and subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sziklai, Balázs R. & Kóczy, László Á. & Csercsik, Dávid, 2020. "The impact of Nord Stream 2 on the European gas market bargaining positions," Energy Policy, Elsevier, vol. 144(C).
    2. Schulte, Simon & Weiser, Florian, 2019. "LNG import quotas in Lithuania – Economic effects of breaking Gazprom's natural gas monopoly," Energy Economics, Elsevier, vol. 78(C), pages 174-181.

    More about this item

    JEL classification:

    • F0 - International Economics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aen:journl:ej39-2-hinchey. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: David Williams (email available below). General contact details of provider: https://edirc.repec.org/data/iaeeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.