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Transportation and storage under a dynamic price cap regulation process

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  • Breton, Michèle
  • Kharbach, Mohammed

Abstract

We study the welfare effects of Price Cap Regulation (PCR) and the strategic behavior it may induce in gas transportation networks by analyzing a stylized gas network within the framework of a multi-period game model under three scenarios: No regulation, a dynamic setting where the price cap adjustment mechanism is not endogenized by the players, and a dynamic setting where it is endogenized by the players.

Suggested Citation

  • Breton, Michèle & Kharbach, Mohammed, 2012. "Transportation and storage under a dynamic price cap regulation process," Energy Economics, Elsevier, vol. 34(4), pages 918-929.
    • Handle: RePEc:eee:eneeco:v:34:y:2012:i:4:p:918-929
    DOI: 10.1016/j.eneco.2012.04.009
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    References listed on IDEAS

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    1. Law, Peter J, 1995. "Tighter Average Revenue Regulation Can Reduce Consumer Welfare," Journal of Industrial Economics, Wiley Blackwell, vol. 43(4), pages 399-404, December.
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    9. Buehler, Stefan & Burger, Anton & Ferstl, Robert, 2010. "The investment effects of price caps under imperfect competition: A note," Economics Letters, Elsevier, vol. 106(2), pages 92-94, February.
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    Cited by:

    1. Tu, Renfu & Jiao, Yingqi & Qiu, Rui & Liao, Qi & Xu, Ning & Du, Jian & Liang, Yongtu, 2023. "Energy saving and consumption reduction in the transportation of petroleum products: A pipeline pricing optimization perspective," Applied Energy, Elsevier, vol. 342(C).
    2. Mostafa Pazoki & Hamed Samarghandi & Mehdi Behroozi, 2023. "Increasing Supply Chain Resiliency Through Equilibrium Pricing and Stipulating Transportation Quota Regulation," Papers 2308.00681, arXiv.org, revised Oct 2023.
    3. Hongjun Peng & Tao Pang & Fuliang Cao & Juan Zhao, 2018. "A Mutual Subsidy Mechanism for a Seasonal Product Supply Chain Channel Under Double Price Regulation," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 35(06), pages 1-26, December.

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