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.
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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
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