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Pricing Natural Gas in Mexico: An Application of the Little-Mirrlees Rule

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  • Dagobert L. Brito
  • Juan Rosellon

Abstract

The Mexican energy regulatory commission--Comision Reguladora de Energia (CRE)--has implemented a netback rule for linking the Mexican market for natural gas with the North American market. This paper describes the economic analysis that supported this policy. We show that the netback rule is the efficient way to price natural gas and it is in fact an application of the Little-Mirrlees Rule.

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Bibliographic Info

Article provided by International Association for Energy Economics in its journal The Energy Journal.

Volume (Year): Volume23 (2002)
Issue (Month): Number 3 ()
Pages: 81-93

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Handle: RePEc:aen:journl:2002v23-03-a04

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Cited by:
  1. Rosellon, Juan, 2008. "Policy Research Supporting Policy Making: The CIDE-CRE Agreement," MPRA Paper 22419, University Library of Munich, Germany.
  2. Marina Tsygankova, 2008. "Netback pricing as a remedy for the Russian gas deficit," Discussion Papers 554, Research Department of Statistics Norway.

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