The Economics of Cross-border Oil and Gas Pipelines Involving Transit

Ekpen James Omonbude

Chapter 2 in Cross-border Oil and Gas Pipelines and the Role of the Transit Country: Economics, Challenges, and Solutions, 2013, pp 10-34 from Palgrave Macmillan

Abstract: Abstract This chapter reviews and analyses the literature on the economics of pipelines in general. The primary intention is to identify and define the economic characteristics of cross-border and transit pipelines. The technical, economic, and political factors discussed in this chapter are relevant to an understanding of how pipelines work. The impact of these factors on the transit fee is examined. The aim is to provide a basis for generalisations regarding transit fees, and to provide the basic tools to answer the question of whether a pipeline agreement that is reasonable, objective, transparent, and non-discriminatory does exist or can exist in the long term.

Keywords: Utilisation Factor; Natural Monopoly; Transit Country; Economic Rent; Transit Route (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-27452-6_2

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DOI: 10.1057/9781137274526_2

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