Facebook LinkedIn Twitter
Shop

IAEE Members and subscribers to The Energy Journal: Please log in to access the full text article or receive discounted pricing for this article.

Spatial Price and Quantity Relationships in World and Continental Commodity Markets

Abstract:
Modeling world or continental natural gas, oil, coal, or electricity requires a representation of the spatial nature of such commodity markets� multiple interconnected and/or independent source points, intermediate points, and consumption points. Spatial commodity models, properly constructed, expose the underlying economic fundamentals�prices, basis differentials, flowing quantities, and why prices and quantities embrace certain relationships but not others. This paper examines spatial market equilibrium from a methodological perspective and puts forth results that explain interrelationships of prices and quantities of commodity throughout a market of competing/complementary supply chains. The objective is to allay common �myths� by counterexample and at the same time posit some realities both methodologically and by example.

Purchase ( $25 )

Energy Specializations: Natural Gas – Local Distribution; Natural Gas – Markets and Prices

JEL Codes:
L95 - Gas Utilities; Pipelines; Water Utilities
L13 - Oligopoly and Other Imperfect Markets

Keywords: Spatial energy markets, natural gas, energy transportation, market power

DOI: 10.5547/ISSN0195-6574-EJ-Vol30-NoSI-3


Published in Volume 30, Special Issue of The Quarterly Journal of the IAEE's Energy Economics Education Foundation.