IDEAS home Printed from https://ideas.repec.org/a/uwp/landec/v73y1997i3p390-408.html
   My bibliography  Save this article

Evolution of the U.S. Natural Gas Industry in Response to Changes in Transaction Costs

Author

Listed:
  • Carol A. Dahl
  • Thomas K. Matson

Abstract

The U.S. natural gas industry traditionally had producers, interstate pipelines, and distributors linked together via bilateral, long-term contracts. Recently the Federal Energy Regulatory Commission has encouraged buyers and sellers to deal directly with each other, leading first to a spot market and marketers, then to market hubs and a slight trend back to longer-term contracts. Marketers and pipelines have consolidated to take advantage of economies of scope and systems effects which larger networks provide. We use transaction cost economics to explain the evolution of exchange relationships with open access to transportation and the unbundling of transportation and storage from sales.

Suggested Citation

  • Carol A. Dahl & Thomas K. Matson, 1997. "Evolution of the U.S. Natural Gas Industry in Response to Changes in Transaction Costs," Land Economics, University of Wisconsin Press, vol. 73(3), pages 390-408.
    • Handle: RePEc:uwp:landec:v:73:y:1997:i:3:p:390-408
    as

    Download full text from publisher

    File URL: http://www.jstor.org/stable/pdfplus/3147120
    Download Restriction: A subscripton is required to access pdf files. Pay per article is available.
    ---><---

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

    Other versions of this item:

    Citations

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


    Cited by:

    1. Dahl, Carol & Ko, James, 1998. "The effect of deregulation on US fossil fuel substitution in the generation of electricity," Energy Policy, Elsevier, vol. 26(13), pages 981-988, November.
    2. Benoit A. Aubert & Jean Francois Houde & Suzanne Rivard & Michel Patry, 0. "Determinants of contract completeness for information technology outsourcing," Information Technology and Management, Springer, vol. 0, pages 1-16.
    3. Littlechild, Stephen, 2012. "The process of negotiating settlements at FERC," Energy Policy, Elsevier, vol. 50(C), pages 174-191.
    4. John Cuddington & Zhongmin Wang, 2006. "Assessing the Degree of Spot Market Integration for U.S. Natural Gas: Evidence from Daily Price Data," Journal of Regulatory Economics, Springer, vol. 29(2), pages 195-210, March.
    5. Berry, David, 2002. "The market for tradable renewable energy credits," Ecological Economics, Elsevier, vol. 42(3), pages 369-379, September.
    6. Giovanni Goldoni, 2007. "Un bilancio delle liberalizzazioni dei settori dell’energia elettrica e del gas naturale in Italia e in Europa," Working Papers 40/2007, University of Verona, Department of Economics.
    7. Kerr, Sandy & Colton, John & Johnson, Kate & Wright, Glen, 2015. "Rights and ownership in sea country: implications of marine renewable energy for indigenous and local communities," Marine Policy, Elsevier, vol. 52(C), pages 108-115.
    8. Matthew Oliver & Charles Mason & David Finnoff, 2014. "Pipeline congestion and basis differentials," Journal of Regulatory Economics, Springer, vol. 46(3), pages 261-291, December.
    9. Avalos, Roger & Fitzgerald, Timothy & Rucker, Randal R., 2016. "Measuring the effects of natural gas pipeline constraints on regional pricing and market integration," Energy Economics, Elsevier, vol. 60(C), pages 217-231.
    10. Oliver, Matthew E., 2019. "Pricing flexibility under rate-of-return regulation: Effects on network infrastructure investment," Economic Modelling, Elsevier, vol. 78(C), pages 150-161.
    11. Benoit A. Aubert & Jean Francois Houde & Suzanne Rivard & Michel Patry, 2017. "Determinants of contract completeness for information technology outsourcing," Information Technology and Management, Springer, vol. 18(4), pages 277-292, December.
    12. Roberto Cardinale, 2023. "Liberalization and the volatility of gas prices: Exploring their relation in times of abundance and scarcity," Competition and Regulation in Network Industries, , vol. 24(2-3), pages 72-96, June.
    13. Cardinale, Roberto, 2019. "The profitability of transnational energy infrastructure: A comparative analysis of the Greenstream and Galsi gas pipelines," Energy Policy, Elsevier, vol. 131(C), pages 347-357.

    More about this item

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

    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:uwp:landec:v:73:y:1997:i:3:p:390-408. 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: the person in charge (email available below). General contact details of provider: http://le.uwpress.org/ .

    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.