Table of Contents

International Handbook on the Economics of Energy

International Handbook on the Economics of Energy

Elgar original reference

Edited by Joanne Evans and Lester C. Hunt

As an essential component for economic growth, energy has a significant impact on the global economy. The need to meet growing energy demand has prompted cutting-edge innovation in clean technology in an attempt to realise environmental and cost objectives, whilst ensuring the security of energy supply. This Handbook offers a comprehensive review of the economics of energy, including contributions from a distinguished array of international specialists. It provides a thorough discussion of the major research issues in this topical field of economics.

Chapter 20: Natural Gas and Electricity Markets

W.D. Walls

Subjects: economics and finance, energy economics, public sector economics

Extract

W.D. Walls 1 Introduction The natural gas and electric power industries – once the classic examples of natural monopoly – are increasingly being open to market forces instead of public service commissions. The emergence of markets in the North American natural gas industry in the mid-1980s resulted largely from the failure of regulation, and a consequence of this regulatory failure was the separation of the energy commodity from its transportation. This simple change in the organization – where the energy commodity was unbundled from its transmission – provides the basis for restructuring natural gas and electricity markets. The natural gas and electricity industries are being transformed so that they more closely resemble a commodity market than a public utility in the move toward market-oriented allocation mechanisms for production, transmission, and distribution. 2 The Emergence of Markets Competitive markets for natural gas in the US emerged in the 1980s; since that time the natural gas and electric power industries in numerous countries around the globe have been transformed from a regulated structure to one based on markets, including those in Argentina, Australia, Canada, New Zealand, the US, and the United Kingdom among others. In the European Union (EU), a directive on opening up markets was adopted in 1998; however, nearly 10 years later, numerous countries – including France, Germany, Austria, Bulgaria, Cyprus, Greece, Luxembourg, Latvia and Slovakia – remain resistant to the full unbundling of energy production and transmission.1 In contrast to the energy market reforms being imposed on EU member states, the initial emergence of markets...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information