IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v36y2008i8p3009-3018.html
   My bibliography  Save this article

Building and interconnecting hydrogen networks: Insights from the electricity and gas experience in Europe

Author

Listed:
  • Bento, Nuno

Abstract

This paper aims to investigate the transition to a new energy system based on hydrogen in the European liberalized framework. After analyzing the literature on the hydrogen infrastructure needs in Europe, we estimate the size and scope of the transition challenge. We take the theoretical framework of network economics to analyze early hydrogen infrastructure needs. Therefore, several concepts are applied to hydrogen economics such as demand club effects, scale economies on large infrastructures, scope economies, and positive socio-economical externalities. Based on the examples of the electricity and natural gas industry formation in Europe, we argue for public intervention in order to create conditions to reach more rapidly the critical size of the network and to prompt network externalities, allowing for the market diffusion of and, thus, an effective transition to the new energy system.

Suggested Citation

  • Bento, Nuno, 2008. "Building and interconnecting hydrogen networks: Insights from the electricity and gas experience in Europe," Energy Policy, Elsevier, vol. 36(8), pages 3009-3018, August.
    • Handle: RePEc:eee:enepol:v:36:y:2008:i:8:p:3009-3018
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301-4215(08)00185-7
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Nicholas Economides, 1997. "The Economics of Networks," Brazilian Electronic Journal of Economics, Department of Economics, Universidade Federal de Pernambuco, vol. 1(0), December.
    2. Arthur, W Brian, 1989. "Competing Technologies, Increasing Returns, and Lock-In by Historical Events," Economic Journal, Royal Economic Society, vol. 99(394), pages 116-131, March.
    3. Barro, Robert J, 1990. "Government Spending in a Simple Model of Endogenous Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 103-126, October.
    4. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
    5. Yang, Christopher & Ogden, Joan M, 2005. "Analyzing Natural Gas Based Hydrogen Infrastructure - Optimizing Transitions from Distributed to Centralized H2 Production," Institute of Transportation Studies, Working Paper Series qt9gg2q7zx, Institute of Transportation Studies, UC Davis.
    6. Yang, Christopher & Ogden, Joan M, 2007. "Determining the lowest-cost hydrogen delivery mode," Institute of Transportation Studies, Working Paper Series qt1804p4vw, Institute of Transportation Studies, UC Davis.
    7. David, Paul A, 1985. "Clio and the Economics of QWERTY," American Economic Review, American Economic Association, vol. 75(2), pages 332-337, May.
    8. Wietschel, Martin & Hasenauer, Ulrike & de Groot, Arend, 2006. "Development of European hydrogen infrastructure scenarios--CO2 reduction potential and infrastructure investment," Energy Policy, Elsevier, vol. 34(11), pages 1284-1298, July.
    9. David J. Teece, 1990. "Structure and Organization of the Natural Gas Industry: Differences between the United States and the Federal Republic of Germany and Implications for the Carrier Status of Pipelines," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 1-36.
    10. Yang, Christopher & Ogden, Joan M, 2007. "Determining the lowest-cost hydrogen delivery mode," Institute of Transportation Studies, Working Paper Series qt7p3500g2, Institute of Transportation Studies, UC Davis.
    11. Braeutigam, Ronald R., 1989. "Optimal policies for natural monopolies," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 23, pages 1289-1346, Elsevier.
    12. Katz, Michael L & Shapiro, Carl, 1985. "Network Externalities, Competition, and Compatibility," American Economic Review, American Economic Association, vol. 75(3), pages 424-440, June.
    13. Yang, Christopher & Ogden, Joan M, 2005. "Analyzing Natural Gas Based Hydrogen Infrastructure - Optimizing Transitions from Distributed to Centralized H2 Production," Institute of Transportation Studies, Working Paper Series qt99k6k11h, Institute of Transportation Studies, UC Davis.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. S. A. MirHassani & R. Ebrazi, 2013. "A Flexible Reformulation of the Refueling Station Location Problem," Transportation Science, INFORMS, vol. 47(4), pages 617-628, November.
    2. Quddus, Md Abdul & Kabli, Mohannad & Marufuzzaman, Mohammad, 2019. "Modeling electric vehicle charging station expansion with an integration of renewable energy and Vehicle-to-Grid sources," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 128(C), pages 251-279.
    3. Chung, Sung Hoon & Kwon, Changhyun, 2015. "Multi-period planning for electric car charging station locations: A case of Korean Expressways," European Journal of Operational Research, Elsevier, vol. 242(2), pages 677-687.
    4. Davidov, Sreten & Pantoš, Miloš, 2017. "Planning of electric vehicle infrastructure based on charging reliability and quality of service," Energy, Elsevier, vol. 118(C), pages 1156-1167.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nuno Bento, 2007. "Prospects for the hydrogen transition based on the network economic approach : Insights from the electricity and gas experience in Europe," Post-Print halshs-00193674, HAL.
    2. Jullien, Bruno, 2001. "Competing with Network Externalities and Price Discrimination," CEPR Discussion Papers 2883, C.E.P.R. Discussion Papers.
    3. S. J. Liebowitz & Stephen E. Margolis, 1994. "Network Externality: An Uncommon Tragedy," Journal of Economic Perspectives, American Economic Association, vol. 8(2), pages 133-150, Spring.
    4. A. Bassanini & G. Dosi, 1998. "Competing Technologies, International Diffusion and the Rate of Convergence to a Stable Market Structure," Working Papers ir98012, International Institute for Applied Systems Analysis.
    5. Deishin Lee & Haim Mendelson, 2007. "Adoption of Information Technology Under Network Effects," Information Systems Research, INFORMS, vol. 18(4), pages 395-413, December.
    6. Puffert, Douglas J., 2002. "Path Dependence in Spatial Networks: The Standardization of Railway Track Gauge," Explorations in Economic History, Elsevier, vol. 39(3), pages 282-314, July.
    7. Marechal, Kevin, 2007. "The economics of climate change and the change of climate in economics," Energy Policy, Elsevier, vol. 35(10), pages 5181-5194, October.
    8. Heli Koski & Tobias Kretschmer, 2004. "Survey on Competing in Network Industries: Firm Strategies, Market Outcomes, and Policy Implications," Journal of Industry, Competition and Trade, Springer, vol. 4(1), pages 5-31, March.
    9. Marta Montinaro & Rupayan Pal & Marcella Scrimitore, 2020. "Per Unit and Ad Valorem Royalties in a Patent Licensing Game," Working Papers 2020.14, Fondazione Eni Enrico Mattei.
    10. Bonaccorsi, Andrea & Rossi, Cristina, 2003. "Why Open Source software can succeed," Research Policy, Elsevier, vol. 32(7), pages 1243-1258, July.
    11. Carrillo-Hermosilla, Javier, 2006. "A policy approach to the environmental impacts of technological lock-in," Ecological Economics, Elsevier, vol. 58(4), pages 717-742, July.
    12. López Cascales, J.J. & Juan-Segovia, M.C. & Ibáñez Molina, J. & Sánchez Vera, J. & Vivo Vivo, P.M., 2015. "Environmental impact associated with the substitution of internal combustion vehicles by fuel cell vehicles refueled with hydrogen generated by electrolysis using the power grid. An estimation focused," Renewable Energy, Elsevier, vol. 77(C), pages 79-85.
    13. Swann, G. M. Peter, 2002. "The functional form of network effects," Information Economics and Policy, Elsevier, vol. 14(3), pages 417-429, September.
    14. Beomjin Choi & T. S. Raghu & Ajay Vinzé & Kevin J. Dooley, 2019. "Effectiveness of standards consortia: Social network perspectives," Information Systems Frontiers, Springer, vol. 21(2), pages 405-416, April.
    15. Dietrich, Antje-Mareike, 2016. "Governmental platform intermediation to promote alternative fuel vehicles," Economics Department Working Paper Series 16, Technische Universität Braunschweig, Economics Department.
    16. Keser, Claudia & Suleymanova, Irina & Wey, Christian, 2012. "Technology adoption in markets with network effects: Theory and experimental evidence," Information Economics and Policy, Elsevier, vol. 24(3), pages 262-276.
    17. Vialle, Pierre & Song, Junjie & Zhang, Jian, 2012. "Competing with dominant global standards in a catching-up context. The case of mobile standards in China," Telecommunications Policy, Elsevier, vol. 36(10), pages 832-846.
    18. Paul W.J. de Bijl & Sanjeev Goyal, 2002. "Market Integration and Technological Change," Netnomics, Springer, vol. 4(1), pages 19-37, March.
    19. G Cameron, 1996. "Innovation and Economic Growth," CEP Discussion Papers dp0277, Centre for Economic Performance, LSE.
    20. Corrado Benassi & Marcella Scrimitore, 2017. "Income Distribution in Network Markets," Journal of Industry, Competition and Trade, Springer, vol. 17(3), pages 251-271, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:36:y:2008:i:8:p:3009-3018. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.