Investment in transport capacity and regulation of regional monopolies in natural gas commodity markets

This paper develops a model of the regulator-regulated firm relationship in a regional natural gas commodity market which can be linked to a competitive market by a pipeline. We characterize normative policies under which the regulator, in addition to setting the level of the capacity of the pipelin...

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Autores Principales: Gasmi, Farid, Oviedo, Juan
Formato: Documento de trabajo (Working Paper)
Lenguaje:Español (Spanish)
Publicado: Universidad del Rosario 2012
Materias:
Acceso en línea:http://repository.urosario.edu.co/handle/10336/10966
id ir-10336-10966
recordtype dspace
spelling ir-10336-109662019-09-19T12:37:01Z Investment in transport capacity and regulation of regional monopolies in natural gas commodity markets Gasmi, Farid Oviedo, Juan Derechos civiles & políticos Gas natural -- legislación Análisis del mercado::Precio Gas natural::Investigaciones Natural gas Regulation Transport capacity This paper develops a model of the regulator-regulated firm relationship in a regional natural gas commodity market which can be linked to a competitive market by a pipeline. We characterize normative policies under which the regulator, in addition to setting the level of the capacity of the pipeline, regulates the price of gas, under asymmetric information on the firm’s technology, and may (or may not) operate (two-way) transfers between consumers and the firm. We then focus on capacity and investigate how its level responds to the regulator’s taking account of the firm’s incentive compatibility constraints. The analysis yields some insights on the role that transport capacity investments may play as an instrument to improve the efficiency of geographically isolated markets. 2012-10 2015-10-06T12:22:23Z info:eu-repo/semantics/workingPaper info:eu-repo/semantics/acceptedVersion http://repository.urosario.edu.co/handle/10336/10966 spa info:eu-repo/semantics/openAccess application/pdf Universidad del Rosario Facultad de Economía instname:Universidad del Rosario reponame:Repositorio Institucional EdocUR instname:Universidad del Rosario
institution EdocUR - Universidad del Rosario
collection DSpace
language Español (Spanish)
topic Derechos civiles & políticos
Gas natural -- legislación
Análisis del mercado::Precio
Gas natural::Investigaciones
Natural gas
Regulation
Transport capacity
spellingShingle Derechos civiles & políticos
Gas natural -- legislación
Análisis del mercado::Precio
Gas natural::Investigaciones
Natural gas
Regulation
Transport capacity
Gasmi, Farid
Oviedo, Juan
Investment in transport capacity and regulation of regional monopolies in natural gas commodity markets
description This paper develops a model of the regulator-regulated firm relationship in a regional natural gas commodity market which can be linked to a competitive market by a pipeline. We characterize normative policies under which the regulator, in addition to setting the level of the capacity of the pipeline, regulates the price of gas, under asymmetric information on the firm’s technology, and may (or may not) operate (two-way) transfers between consumers and the firm. We then focus on capacity and investigate how its level responds to the regulator’s taking account of the firm’s incentive compatibility constraints. The analysis yields some insights on the role that transport capacity investments may play as an instrument to improve the efficiency of geographically isolated markets.
format Documento de trabajo (Working Paper)
author Gasmi, Farid
Oviedo, Juan
author_facet Gasmi, Farid
Oviedo, Juan
author_sort Gasmi, Farid
title Investment in transport capacity and regulation of regional monopolies in natural gas commodity markets
title_short Investment in transport capacity and regulation of regional monopolies in natural gas commodity markets
title_full Investment in transport capacity and regulation of regional monopolies in natural gas commodity markets
title_fullStr Investment in transport capacity and regulation of regional monopolies in natural gas commodity markets
title_full_unstemmed Investment in transport capacity and regulation of regional monopolies in natural gas commodity markets
title_sort investment in transport capacity and regulation of regional monopolies in natural gas commodity markets
publisher Universidad del Rosario
publishDate 2012
url http://repository.urosario.edu.co/handle/10336/10966
_version_ 1645142119807975424
score 12,131701