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Cross-border constraints, institutional changes and integration of the Dutch–German gas market

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  • Kuper, Gerard H.
  • Mulder, Machiel

Abstract

We evaluate the contribution of nine institutional changes to the integration of the Dutch and German gas markets. We analyse this contribution through the impact of bottlenecks in the cross-border infrastructure on the absolute value of cross-border price differences. In the period 2007–2013, the absolute value of the differences in price levels between the Dutch and the German NCG market decreased, indicating more integration. We find evidence that the improved connections within the German networks as well as between the Dutch and the German network contributed to this. The strengthening of the connections with the UK market and the Russian supply, however, had a negative effect on market integration between the Dutch and the German NCG market. The liquidity-enhancing changes within the Dutch market had a negligible effect.

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  • Kuper, Gerard H. & Mulder, Machiel, 2016. "Cross-border constraints, institutional changes and integration of the Dutch–German gas market," Energy Economics, Elsevier, vol. 53(C), pages 182-192.
    • Handle: RePEc:eee:eneeco:v:53:y:2016:i:c:p:182-192
    DOI: 10.1016/j.eneco.2014.09.009
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    5. Goodell, John W. & Gurdgiev, Constantin & Paltrinieri, Andrea & Piserà, Stefano, 2023. "Global energy supply risk: Evidence from the reactions of European natural gas futures to Nord Stream announcements," Energy Economics, Elsevier, vol. 125(C).
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    7. Keller, Jann T. & Kuper, Gerard H. & Mulder, Machiel, 2019. "Mergers of Germany's natural gas market areas: Is transmission capacity booked efficiently?," Utilities Policy, Elsevier, vol. 56(C), pages 104-119.
    8. Ivan Aleksandrovich Kopytin & Alexander Oskarovich Maslennikov & Stanislav Vyacheslavovich Zhukov, 2022. "Europe in World Natural Gas Market: International Transmission of European Price Shocks," International Journal of Energy Economics and Policy, Econjournals, vol. 12(3), pages 8-15, May.
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    More about this item

    Keywords

    Gas market; Regulation; Cross-border infrastructure; Time-series analysis;
    All these keywords.

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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