IDEAS home Printed from https://ideas.repec.org/p/cam/camdae/1204.html
   My bibliography  Save this paper

The Cost of Improving Gas Supply Security in the Baltic States

Author

Listed:
  • Noël, P.
  • Findlater, S.
  • Chyong, C. K.

Abstract

The Baltic States (Estonia, Latvia and Lithuania) are three amongst the smallest gas markets in Europe. They import all the gas they consume from Russia, with whom they have difficult political relationships. A disruption of their supply from Russia, whatever the cause, would have severe consequences as a large share of their peak winter consumption could not be replaced by alternative gas or other fuels. The three governments want to invest in improving gas supply security and the European Commission pushes in the same direction. But what should they do? We present an assessment of the cost of various national and regional options – dual-fuel for heat plants and CHPs; strategic gas storage; strategic LNG terminals – to increase gas supply security. The cost is calculated over thirty years for different scenarios of supply disruptions. Uncertainty in commodity prices and interest rates is taken into account through Monte Carlo simulations. We draw the policy conclusions, taking into account the regional political context.

Suggested Citation

  • Noël, P. & Findlater, S. & Chyong, C. K., 2012. "The Cost of Improving Gas Supply Security in the Baltic States," Cambridge Working Papers in Economics 1204, Faculty of Economics, University of Cambridge.
    • Handle: RePEc:cam:camdae:1204
    as

    Download full text from publisher

    File URL: http://www.econ.cam.ac.uk/research-files/repec/cam/pdf/cwpe1204.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. repec:reg:rpubli:33 is not listed on IDEAS
    2. Christian Winzer, 2011. "Conceptualising Energy Security," Working Papers EPRG 1123, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    3. Damigos, D. & Tourkolias, C. & Diakoulaki, D., 2009. "Households' willingness to pay for safeguarding security of natural gas supply in electricity generation," Energy Policy, Elsevier, vol. 37(5), pages 2008-2017, May.
    4. Florent Silve & Pierre Noël, 2010. "Cost Curves for Gas Supply Security: The Case of Bulgaria," Working Papers EPRG 1031, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    5. Sachi Findlater & Pierre Noël, 2010. "Gas Supply Security in the Baltic States: A Qualitative Assessment," Working Papers EPRG 1008, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Pierre Noel & Sachi Findlater & Chi Kong Chyong, 2013. "Baltic Gas Supply Security: Divided We Stand?," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 1).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pierre Noel & Sachi Findlater & Chi Kong Chyong, 2013. "Baltic Gas Supply Security: Divided We Stand?," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 1).
    2. Stanislav Zhiznin & Velislava Dineva, 2022. "The Role of Gas Interconnections in the Energy Security of South East Europe," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 38-59.
    3. Barrett, Alan & Bergin, Adele & FitzGerald, John & Lambert, Derek & McCoy, Daire & Morgenroth,Edgar & Siedschlag, Iulia & Studnicka, Zuzanna, 2015. "Scoping the Possible Economic Implications of Brexit on Ireland," Research Series, Economic and Social Research Institute (ESRI), number RS48.
    4. Amoah, Anthony & Ferrini, Silvia & Schaafsma, Marije, 2019. "Electricity outages in Ghana: Are contingent valuation estimates valid?," Energy Policy, Elsevier, vol. 135(C).
    5. Narula, Kapil & Reddy, B. Sudhakara, 2015. "Three blind men and an elephant: The case of energy indices to measure energy security and energy sustainability," Energy, Elsevier, vol. 80(C), pages 148-158.
    6. Chi-Kong Chyong & Roman Kazmin, 2016. "The economics of global LNG trade: the case of Atlantic and Pacific inter-basin arbitrage in 2010-2014," Cambridge Working Papers in Economics 1604, Faculty of Economics, University of Cambridge.
    7. Irie, Noriko & Kawahara, Naoko, 2022. "Consumer preferences for local renewable electricity production in Japan: A choice experiment," Renewable Energy, Elsevier, vol. 182(C), pages 1171-1181.
    8. Stigka, Eleni K. & Paravantis, John A. & Mihalakakou, Giouli K., 2014. "Social acceptance of renewable energy sources: A review of contingent valuation applications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 32(C), pages 100-106.
    9. Lu, Weiwei & Su, Meirong & Fath, Brian D. & Zhang, Mingqi & Hao, Yan, 2016. "A systematic method of evaluation of the Chinese natural gas supply security," Applied Energy, Elsevier, vol. 165(C), pages 858-867.
    10. Mingqi Zhang & Meirong Su & Weiwei Lu & Chunhua Su, 2015. "An Assessment of the Security of China’s Natural Gas Supply System Using Two Network Models," Energies, MDPI, vol. 8(12), pages 1-16, December.
    11. Woo, JongRoul & Chung, Sungsam & Lee, Chul-Yong & Huh, Sung-Yoon, 2019. "Willingness to participate in community-based renewable energy projects: A contingent valuation study in South Korea," Renewable and Sustainable Energy Reviews, Elsevier, vol. 112(C), pages 643-652.
    12. Popkin, Jennifer H. & Duke, Joshua M. & Borchers, Allison M. & Ilvento, Thomas, 2013. "Social costs from proximity to hydraulic fracturing in New York State," Energy Policy, Elsevier, vol. 62(C), pages 62-69.
    13. Curtis, John & Devitt, Niamh & di Cosmo, Valeria & Farrell, Niall & FitzGerald, John & Hyland, Marie & Lynch, Muireann & Lyons, Sean & McCoy, Daire & Malaguzzi Valeri, Laura & Walsh, Darragh, 2014. "Irish Energy Policy: An Analysis of Current Issues," Research Series, Economic and Social Research Institute (ESRI), number rs37 edited by FitzGerald, John & Malaguzzi Valeri, Laura.
    14. Kim, Jinsoo & Kim, Jihyo, 2015. "Korean public’s perceptions on supply security of fossil fuels: A contingent valuation analysis," Applied Energy, Elsevier, vol. 137(C), pages 301-309.
    15. Emily Cox, 2016. "Assessing energy security in a lowcarbon context: the case of electricity in the UK," SPRU Working Paper Series 2016-07, SPRU - Science Policy Research Unit, University of Sussex Business School.
    16. Zeniewski, Peter & Bolado-Lavin, Ricardo, 2012. "A review of national gas emergency plans in the European Union," Energy Policy, Elsevier, vol. 49(C), pages 652-662.
    17. Cheng, Y.S. & Cao, K.H. & Woo, C.K. & Yatchew, A., 2017. "Residential willingness to pay for deep decarbonization of electricity supply: Contingent valuation evidence from Hong Kong," Energy Policy, Elsevier, vol. 109(C), pages 218-227.
    18. Kapil Narula & B. Sudhakara Reddy, 2014. "Three Blind Men and an Elephant: The Case of Energy Indices to Measure Energy Security and Sustainability," Working Papers id:5989, eSocialSciences.
    19. Herath Gunatilake & Masayuki Tachiri, 2014. "Willingness to Pay and Inclusive Tariff Designs for Improved Water Supply Services in Urban Bangladesh," Journal of Sustainable Development, Canadian Center of Science and Education, vol. 7(5), pages 212-212, September.
    20. Leahy, Eimear & Devitt, Conor & Lyons, Seán & Tol, Richard S.J., 2012. "The cost of natural gas shortages in Ireland," Energy Policy, Elsevier, vol. 46(C), pages 153-169.

    More about this item

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:cam:camdae:1204. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Jake Dyer (email available below). General contact details of provider: https://www.econ.cam.ac.uk/ .

    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.