European gas regulation: a change of focus
AbstractThis paper confronts the current European gas regulation with the emerging new energy paradigm. It argues that due to a lack of policy credibility, the hold-up problem is a serious threat that will undermine the workings of the future EU gas market. This paper explores how one could from a theoretical perspective, given the characteristics of the EU gas markets, try to solve the hold-up problem. Two conclusions are 1) that hold-up will not be solved completely and 2) that in order to solve the hold-up problem as much as possible, the underlying assumption of energy policy should be changed. More specifically, the regulatory focus should no longer emphasize predominantly the consumer interests, but should instead more explicitly recognize producer interests. This implies that the current European gas regulation requires a change of focus.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 21146.
Date of creation: 2006
Date of revision:
gas regulation; hold-up; regulation theory; new energy paradigm;
Find related papers by JEL classification:
- L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
- L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
- Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Williamson, Oliver E, 1971. "The Vertical Integration of Production: Market Failure Considerations," American Economic Review, American Economic Association, vol. 61(2), pages 112-23, May.
- Steven Tadelis & Oliver E.Williamson, 2012.
"Transaction Cost Economics
[The Handbook of Organizational Economics]," Introductory Chapters, Princeton University Press.
- Spiller, Pablo T, 1996. "Institutions and Commitment," Industrial and Corporate Change, Oxford University Press, vol. 5(2), pages 421-52.
- Schmidt, Klaus M., 1997.
"The Political Economy of Mass Privatization and the Risk of Expropriation,"
CEPR Discussion Papers
1542, C.E.P.R. Discussion Papers.
- Schmidt, Klaus M., 2000. "The political economy of mass privatization and the risk of expropriation," European Economic Review, Elsevier, vol. 44(2), pages 393-421, February.
- Klaus M. Schmidt, 1998. "The Political Economy of Mass Privatization and the Risk of Expropriation," William Davidson Institute Working Papers Series 136, William Davidson Institute at the University of Michigan.
- Newbery, David M G, 2002.
"Economic Reform in Europe: Integrating and Liberalizing the Market for Services,"
CEPR Discussion Papers
3183, C.E.P.R. Discussion Papers.
- Newbery, David M., 2001. "Economic reform in Europe: integrating and liberalizing the market for services," Utilities Policy, Elsevier, vol. 10(2), pages 85-97, June.
- Schmidt, Klaus M., 2000. "The political economy of mass privatization and the risk of expropriation," Munich Reprints in Economics 19771, University of Munich, Department of Economics.
- Armstrong, Mark & Sappington, David E.M., 2007. "Recent Developments in the Theory of Regulation," Handbook of Industrial Organization, Elsevier.
- Sioshansi, Fereidoon P., 2005. "Global climate change: here to stay," Utilities Policy, Elsevier, vol. 13(3), pages 240-246, September.
- Lewis, Tracy R & Sappington, David E M, 1990. "Sequential Regulatory Oversight," Journal of Regulatory Economics, Springer, vol. 2(4), pages 327-48, December.
- Dieter Helm, 2005. "The Assessment: The New Energy Paradigm," Oxford Review of Economic Policy, Oxford University Press, vol. 21(1), pages 1-18, Spring.
- Paul Levine & John Stern & Francesc Trillas, 2005. "Utility price regulation and time inconsistency: comparisons with monetary policy," Oxford Economic Papers, Oxford University Press, vol. 57(3), pages 447-478, July.
- Bruno Biais & Enrico Perotti, 2002. "Machiavellian Privatization," American Economic Review, American Economic Association, vol. 92(1), pages 240-258, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.