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The Economics of Seasonal Gas Storage

Author

Listed:
  • CHATON Corinne
  • CRETI Anna
  • VILLENEUVE Bertrand

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.
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Suggested Citation

  • CHATON Corinne & CRETI Anna & VILLENEUVE Bertrand, 2006. "The Economics of Seasonal Gas Storage," LERNA Working Papers 06.01.194, LERNA, University of Toulouse.
    • Handle: RePEc:ler:wpaper:06.01.194
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    File URL: http://www2.toulouse.inra.fr/lerna/cahiers2006/06.01.192.pdf
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    References 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, 2007. "Strategic Storage and Market Power in the Natural Gas Market," Energy and Environmental Modeling 2007 24000013, EcoMod.

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