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The Short and Long Term Impact of Europe’s Natural Gas Market on Electricity Markets until 2050

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The interdependence of electricity and natural gas is becoming a major energy policy and regulatory issue in all jurisdictions around the world. The increased role of gas fired plants in renewable-based electricity markets and the dependence on natural gas imports make this issue particular important for the European energy market. In this paper we provide a comprehensive combined analysis of electricity and natural gas infrastructure with an applied focus: We analyze three different scenarios of the long-term European decarbonization pathways, and analyze the interrelation between electricity and natural gas markets on investments in the long run and spatial aspects in the short run.

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JEL Codes: Q41: Energy: Demand and Supply; Prices, Q42: Alternative Energy Sources, Q35: Hydrocarbon Resources

Keywords: Europe, Electricity Markets, Natural Gas Markets, Networks


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Published in Volume 37, Sustainable Infrastructure Development and Cross-Border Coordination of the bi-monthly journal of the IAEE's Energy Economics Education Foundation.


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