This paper examines the efficiency of the arbitrages performed between two regional markets for wholesale natural gas linked by a capacity-constrained pipeline system. We develop a switching regime specification to (i) detect if the observed spatial arbitrages satisfy the integration notion that...

This paper examines the deployment of a natural gas pipeline in a developing region where the rate-of-return (RoR) regulation has been implemented to attract investment. We assume that the pipeline firm considers the proven demand emanating from a few large industrial sites but ignores the...

Since the liberalization of power markets in Europe, almost all investments have required government subsidies. This demonstrates the failure of short-term markets to send the right price signals to investors, but other market failures have been brought to light, among which is market...

Legacy assets can constitute entry barriers in liberalized power markets. Regulations pertaining to such assets have many objectives, the most important of which are to transfer the benefits of an economical production technology to consumers and foster competition. To that end, countries have...