European Natural Gas Markets: Resource Constraints and Market Power
The European natural gas market is characterized by declining indigenous resources, particularly in the UK and the Netherlands, and a growing dependence on a small number of large exporters who, as a consequence, see their market power increasing. In this paper we analyze long-run scenarios for the European natural gas markets in a model, NATGAS, that explicitly includes both factors, resource constraints and producersÕ market power. Finite resources lead to interdependencies of current production decisions and future opportunities. These decisions in turn depend on the potential for large producers to set market prices above marginal costs. We analyze the impact of conditions on the global LNG market on market shares of pipeline gas suppliers, as well as on the speed of depletion of indigenous European resources. We focus on how shadow prices of resource constraints affect substitution patterns in the various scenarios.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): Volume 30 (2009)
Issue (Month): Special Issue ()
|Contact details of provider:|| Postal: |
Web page: http://www.iaee.org
More information through EDIRC
|Order Information:||Web: http://www.iaee.org/en/publications/ejsearch.aspx|
References listed on IDEAS
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.:
- Maroeska G. Boots, Fieke A.M. Rijkers and Benjamin F. Hobbs, 2004. "Trading in the Downstream European Gas Market: A Successive Oligopoly Approach," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 73-102.
- Peter R. Hartley and Kenneth B. Medlock III, 2009. "Potential Futures for Russian Natural Gas Exports," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 73-96.
- Franziska Holz & Christian von Hirschhausen & Claudia Kemfert, 2006.
"A Strategic Model of European Gas Supply (GASMOD),"
Discussion Papers of DIW Berlin
551, DIW Berlin, German Institute for Economic Research.
- Finn Roar Aune & Knut Einar Rosendahl & Eirik Lund Sagen, 2008.
"Globalisation of natural gas markets – effects on prices and trade patterns,"
559, Research Department of Statistics Norway.
- Finn Roar Aune, Knut Einar Rosendahl and Eirik Lund Sagen, 2009. "Globalisation of Natural Gas Markets - Effects on Prices and Trade Patterns," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 39-54.
- Lise, Wietze & Hobbs, Benjamin F. & van Oostvoorn, Frits, 2008. "Natural gas corridors between the EU and its main suppliers: Simulation results with the dynamic GASTALE model," Energy Policy, Elsevier, vol. 36(6), pages 1890-1906, June.
- Rolf Golombek & Eystein Gjelsvik & Knut Einar Rosendahl, 1998.
"Increased Competition on the Supply Side of the Western European Natural Gas Market,"
The Energy Journal,
International Association for Energy Economics, vol. 0(Number 3), pages 1-18.
- Golombec, R. & Gjelsvik, E. & Knut, E. & Rosendahl, E., 1996. "Increased Competition on the Supply Side on the Western European Natural Gas Merket," Memorandum 11/1996, Oslo University, Department of Economics.
- Ruud Egging & Steven A. Gabriel & Franziska Holz & Jifang Zhuang, 2007.
"A Complementarity Model for the European Natural Gas Market,"
Discussion Papers of DIW Berlin
732, DIW Berlin, German Institute for Economic Research.
- Egging, Ruud & Gabriel, Steven A. & Holz, Franziska & Zhuang, Jifang, 2008. "A complementarity model for the European natural gas market," Energy Policy, Elsevier, vol. 36(7), pages 2385-2414, July.
- Ruud Egging, Franziska Holz, Christian von Hirschhausen and Steven A. Gabriel, 2009.
"Representing GASPEC with the World Gas Model,"
The Energy Journal,
International Association for Energy Economics, vol. 0(Special I), pages 97-118.
- Egging, Rudolf G. & Gabriel, Steven A., 2006. "Examining market power in the European natural gas market," Energy Policy, Elsevier, vol. 34(17), pages 2762-2778, November.
- Stiglitz, Joseph E, 1976. "Monopoly and the Rate of Extraction of Exhaustible Resources," American Economic Review, American Economic Association, vol. 66(4), pages 655-61, September.
When requesting a correction, please mention this item's handle: RePEc:aen:journl:hh-se-a10. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (David Williams)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.