Loss allocation in energy transmission networks
Ángel M. González-Rueda and
María P. Fernández de Córdoba
Games and Economic Behavior, 2017, vol. 102, issue C, 69-97
In this paper we study a cost allocation problem that is inherent to most energy networks: the allocation of losses. In particular, we study how to allocate gas losses between haulers in gas transmission networks. We discuss four allocation rules, two of them have already been in place in real networks and two others that are defined for the first time in this paper. We then present a comparative analysis of the different rules by studying their behavior with respect to a set of principles set forth by the European Union. This analysis also includes axiomatic characterizations of two of the rules. Finally, as an illustration, we apply them to the Spanish gas transmission network.
Keywords: Gas transmission networks; Loss allocation; Cost allocation; Management (search for similar items in EconPapers)
JEL-codes: C7 L95 R48 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:eee:gamebe:v:102:y:2017:i:c:p:69-97
Access Statistics for this article
Games and Economic Behavior is currently edited by E. Kalai
More articles in Games and Economic Behavior from Elsevier
Series data maintained by Dana Niculescu ().