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Some Economics of Seasonal Gas Storage

Chaton, Corinne and Creti, Anna and Villeneuve, Bertrand (2008): Some Economics of Seasonal Gas Storage.

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Abstract

We propose a model of seasonal gas markets which is flexible enough to include supply and demand shocks while also considering exhaustibility. The relative performances of alternative policies based on price caps and associated measures or tariffs are discussed. We illustrate with structural estimates on US data how this theory can be used to give insights into the intertemporal incidence of policy instruments.

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