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Conflict and cooperation with respect to European natural-gas regulations

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  • Gunnar Austvik, Ole

Abstract

Significant economies of scale and scope in the European gas industry make many transmission and local distribution companies natural monopolies in the markets in which they operate. Often, this gives them a strong market power and they experience little competitive pressure. Hence public interventions into the functioning of the market, as seen under the initiatives taken by the European Commission, such as the "Gas Directive" occur. This paper discusses a game between the public authority and the transporters, where various levels of conflict and cooperation will influence how far regulations will go and how they will be designed.

Suggested Citation

  • Gunnar Austvik, Ole, 2003. "Conflict and cooperation with respect to European natural-gas regulations," Applied Energy, Elsevier, vol. 75(1-2), pages 23-32, May.
    • Handle: RePEc:eee:appene:v:75:y:2003:i:1-2:p:23-32
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    References listed on IDEAS

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    1. Jean-Jacques Laffont & Jean Tirole, 1993. "A Theory of Incentives in Procurement and Regulation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121743, December.
    2. Berg,Sanford V. & Tschirhart,John, 1989. "Natural Monopoly Regulation," Cambridge Books, Cambridge University Press, number 9780521338936.
    3. Austvik, Ole Gunnar, 1997. "Gas pricing in a liberalized European market; will the rent be taxed away?," Energy Policy, Elsevier, vol. 25(12), pages 997-1012, October.
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    1. Campos, Adriana Fiorotti & da Silva, Neilton Fidelis & Pereira, Marcio Giannini & Vasconcelos Freitas, Marcos Aurélio, 2017. "A review of Brazilian natural gas industry: Challenges and strategies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 1207-1216.

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