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Transportation and storage under a dynamic price cap regulation process

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  • Breton, Michèle
  • Kharbach, Mohammed

Abstract

We study the welfare effects of Price Cap Regulation (PCR) and the strategic behavior it may induce in gas transportation networks by analyzing a stylized gas network within the framework of a multi-period game model under three scenarios: No regulation, a dynamic setting where the price cap adjustment mechanism is not endogenized by the players, and a dynamic setting where it is endogenized by the players.

Suggested Citation

  • Breton, Michèle & Kharbach, Mohammed, 2012. "Transportation and storage under a dynamic price cap regulation process," Energy Economics, Elsevier, vol. 34(4), pages 918-929.
    • Handle: RePEc:eee:eneeco:v:34:y:2012:i:4:p:918-929
    DOI: 10.1016/j.eneco.2012.04.009
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    References listed on IDEAS

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    9. Simon G. B. Cowan, 1997. "Tight Average Revenue Regulation Can Be Worse Than No Regulation," Journal of Industrial Economics, Wiley Blackwell, vol. 45(1), pages 75-88, March.
    10. Isaac, R Mark, 1991. "Price Cap Regulation: A Case Study of Some Pitfalls of Implementation," Journal of Regulatory Economics, Springer, vol. 3(2), pages 193-210, June.
    11. Kang, Jaesung & Weisman, Dennis L. & Zhang, Mingyuan, 2000. "Do consumers benefit from tighter price cap regulation?," Economics Letters, Elsevier, vol. 67(1), pages 113-119, April.
    12. Jamasb, Tooraj & Nillesen, Paul & Pollitt, Michael, 2003. "Gaming the Regulator: A Survey," The Electricity Journal, Elsevier, vol. 16(10), pages 68-80, December.
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    Cited by:

    1. Pazoki, Mostafa & Samarghandi, Hamed & Behroozi, Mehdi, 2024. "Increasing supply chain resiliency through equilibrium pricing and stipulating transportation quota regulation," Omega, Elsevier, vol. 127(C).
    2. Tu, Renfu & Jiao, Yingqi & Qiu, Rui & Liao, Qi & Xu, Ning & Du, Jian & Liang, Yongtu, 2023. "Energy saving and consumption reduction in the transportation of petroleum products: A pipeline pricing optimization perspective," Applied Energy, Elsevier, vol. 342(C).
    3. Mostafa Pazoki & Hamed Samarghandi & Mehdi Behroozi, 2023. "Increasing Supply Chain Resiliency Through Equilibrium Pricing and Stipulating Transportation Quota Regulation," Papers 2308.00681, arXiv.org, revised Oct 2023.
    4. Hongjun Peng & Tao Pang & Fuliang Cao & Juan Zhao, 2018. "A Mutual Subsidy Mechanism for a Seasonal Product Supply Chain Channel Under Double Price Regulation," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 35(06), pages 1-26, December.

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