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The Economics of Seasonal Gas Storage

Author

Listed:
  • Corinne Chaton

    (Crest)

  • Anna Creti

    (Crest)

  • Bertrand Villeneuve

    (Crest)

Abstract

We propose a model of seasonal gas markets which is flexibleenough to include supply and demand shocks while also consideringnatural gas as an exhaustible resource. Using US data, we estimate themodel's structural parameters and test economically founded restrictions.We analyze, theoretically and using the estimates, the impactof policies (price caps, tariffs, cross subsidies) on prices and quantitiesconsumed or stored. This evaluation gives insights into past orenvisaged public interventions.

Suggested Citation

  • Corinne Chaton & Anna Creti & Bertrand Villeneuve, 2005. "The Economics of Seasonal Gas Storage," Working Papers 2005-52, Center for Research in Economics and Statistics.
  • Handle: RePEc:crs:wpaper:2005-52
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    References listed on IDEAS

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    1. Cremer, Helmuth & Gasmi, Farid & Laffont, Jean-Jacques, 2003. "Access to Pipelines in Competitive Gas Markets," Journal of Regulatory Economics, Springer, vol. 24(1), pages 5-33, July.
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    6. Richard E. Just & Ernst Lutz & Andrew Schmitz & Stephen Tumovsky, 1977. "The Distribution of Welfare Gains from International Price Stabilization under Distortions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 59(4), pages 652-661.
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    10. Wright, Brian D & Williams, Jeffrey C, 1982. "The Economic Role of Commodity Storage," Economic Journal, Royal Economic Society, vol. 92(367), pages 596-614, September.
    11. Amundsen, Eirik Schroder, 1991. "Seasonal fluctuations of demand and optimal inventories of a non-renewable resource such as natural gas," Resources and Energy, Elsevier, vol. 13(3), pages 285-306, September.
    12. S. Devadoss, 1992. "Market Interventions, International Price Stabilization, and Welfare Implications," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(2), pages 281-290.
    13. Brian D. Wright & Jeffrey C. Williams, 1982. "The Roles of Public and Private Storage in Managing Oil Import Disruptions," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 341-353, Autumn.
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    15. Wilson, Robert B, 1989. "Efficient and Competitive Rationing," Econometrica, Econometric Society, vol. 57(1), pages 1-40, January.
    16. repec:dau:papers:123456789/5383 is not listed on IDEAS
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    Cited by:

    1. Andrei Teofil Postolachi, 2013. "Ensuring Security of Supply of Natural Gas in the European Union’s Common Energy Policy," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 9(4), pages 377-387, August.
    2. de Villemeur, Étienne, 2007. "Une tarification saisonnière pour le gaz? Les coûts d'un schéma de régulation rigide pour un bien stockable dont la demande varie," IDEI Working Papers 434, Institut d'Économie Industrielle (IDEI), Toulouse.
    3. Laure Durand-Viel, "undated". "Strategic Storage and Market Power in the Natural Gas Market," Energy and Environmental Modeling 2007 24000013, EcoMod.

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