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Concurrence et stockage stratégique sur le marché gazier

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Listed:
  • Edmond Baranes
  • François Mirabel
  • Jean-Christophe Poudou

Abstract

This article examines the strategic role of gas storage and its regulation in an environment comprising a gas spot market. In keeping with the literature on the topic, we view storage as an instrument that a supplier uses to ensure flexibility when meeting peak demand. In that situation, there is a tradeoff between the use of storage and the use of a short-term market to meet demand. Ourmodel's innovative feature is the linkage between volume of gas stored and spot-marketprice. In some cases, stored gas enables the supplier to partially satisfy demand and so helps to lower the price on the short-term market. We show that the optimal solution may sometimes be for the regulator to allow strategic storage, particularly when there are not enough arbitrageurs in the spot market to keep it fluid.

Suggested Citation

  • Edmond Baranes & François Mirabel & Jean-Christophe Poudou, 2007. "Concurrence et stockage stratégique sur le marché gazier," Economie & Prévision, La Documentation Française, vol. 0(2), pages 25-40.
    • Handle: RePEc:cai:ecoldc:ecop_178_0025
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    References listed on IDEAS

    as
    1. Sébastien Mitraille, 2003. "Comportements microéconomiques de stockage et de vente à terme état de l'analyse économique," Revue d'économie politique, Dalloz, vol. 113(5), pages 649-669.
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    6. Mollgaard, H.P. & Poddar, S. & Sasaki, D., 2000. "Strategic Inventories in Two-period Oligopoly," Discussion Papers 0017, University of Exeter, Department of Economics.
    7. Poddar, Sougata & Sasaki, Dan, 2002. "The strategic benefit from advance production," European Journal of Political Economy, Elsevier, vol. 18(3), pages 579-595, September.
    8. Larry Arvan, 1985. "Some Examples of Dynamic Cournot Duopoly with Inventory," RAND Journal of Economics, The RAND Corporation, vol. 16(4), pages 569-578, Winter.
    9. Pal, Debashis, 1991. "Cournot duopoly with two production periods and cost differentials," Journal of Economic Theory, Elsevier, vol. 55(2), pages 441-448, December.
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    Cited by:

    1. Laure Durand-Viel, 2007. "Strategic Storage and Market Power in the Natural Gas Market," Energy and Environmental Modeling 2007 24000013, EcoMod.

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    Keywords

    storage; spot market; gas market;
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