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Does market power converge among the US states? Evidence from the natural gas sector

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  • Eleftheriou, Konstantinos
  • Polemis, Michael L.
  • Stengos, Thanasis

Abstract

The scope of this study is to investigate the convergence pattern of market power in two retail natural gas markets, namely residential and commercial, across the US states over the period Jan 1997–Dec 2020. Our analysis identifies one non-convergence and several spatial sub-convergence clubs within the US territory for both market segments. Several reasons such as demand characteristics and geographic proximity may explain the different clustering patterns among the spatial units.

Suggested Citation

  • Eleftheriou, Konstantinos & Polemis, Michael L. & Stengos, Thanasis, 2022. "Does market power converge among the US states? Evidence from the natural gas sector," Economics Letters, Elsevier, vol. 214(C).
    • Handle: RePEc:eee:ecolet:v:214:y:2022:i:c:s0165176522000891
    DOI: 10.1016/j.econlet.2022.110432
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    References listed on IDEAS

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    Cited by:

    1. Konstantinos Eleftheriou & Peter Nijkamp & Michael L. Polemis, 2024. "Club convergence of sustainable development: fresh evidence from developing and developed countries," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-18, April.

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    More about this item

    Keywords

    Convergence; Natural gas; Markup; US;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • 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

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