Removing cross-border capacity bottlenecks in the European natural gas market: a proposed merchant-regulatory mechanism

摘要: We propose a merchant-regulatory framework to promote investment in the European natural gas network infrastructure based on price cap over two-part tariffs. As suggested by Vogelsang (J Regul Econ 20:141–165, 2001) and Hogan et al. 38:113–143, 2010), profit maximizing operator facing this regulatory constraint will intertemporally rebalance variable fixed part of its tariff so as expand congested pipelines, converge Ramsey-Boiteaux equilibrium. confirm with actual data from market comparing bi-level price-cap model different reference cases. analyze performance approach under scenarios, identify relevant aspects that need be addressed if were implemented.