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Storage and Competition in gas market

Author

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  • Jean-Christophe Poudou

    (LASER-CREDEN)

Abstract

n order to analyze competition in gas markets, an intermediate activity of storage is included in a classical model of vertical relations. In that case, firms can inject or withdraw strategically natural gas resource. The access to the storage facility can deteriore the welfare since it incites the vertically integrated firms (production and distribution) to withdraw strategically. This incentive is reduced by vertical integration between storage and distribution. Thus it improves the social welfare.

Suggested Citation

  • Jean-Christophe Poudou, 2005. "Storage and Competition in gas market," Economics Bulletin, AccessEcon, vol. 12(19), pages 1-9.
    • Handle: RePEc:ebl:ecbull:eb-05l50001
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    File URL: http://www.accessecon.com/pubs/EB/2005/Volume12/EB-05L50001A.pdf
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    References listed on IDEAS

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    Cited by:

    1. Devine, Mel T. & Russo, Marianna, 2019. "Liquefied natural gas and gas storage valuation: Lessons from the integrated Irish and UK markets," Applied Energy, Elsevier, vol. 238(C), pages 1389-1406.
    2. Breton, Michèle & Kharbach, Mohammed, 2008. "The welfare effects of unbundling gas storage and distribution," Energy Economics, Elsevier, vol. 30(3), pages 732-747, May.
    3. Baranes, Edmond & Mirabel, François & Poudou, Jean-Christophe, 2014. "Access to natural gas storage facilities: Strategic and regulation issues," Energy Economics, Elsevier, vol. 41(C), pages 19-32.
    4. Laure Durand-Viel, 2007. "Strategic Storage and Market Power in the Natural Gas Market," Energy and Environmental Modeling 2007 24000013, EcoMod.

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    More about this item

    JEL classification:

    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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