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Modularity analysis of the Canadian natural gas sector

Vlad Ivanenko

Energy Economics, 2012, vol. 34, issue 4, 1196-1207

Abstract: The paper describes the technological process presented as a chain of tasks that natural gas companies in Canada perform to move natural gas products from the geological formation to the final consumer. Investigating the norms the firms use to establish cooperation with clients and suppliers, it shows that the standardization of tasks facilitate arm's length interactions within the chain. The paper studies the distribution of risks in client–supplier pairs and concludes that their asymmetry in risk-taking may be indicative of relative importance that the risk takers assume within the pairs. Finally, the paper touches on the role that federal and provincial governments play in regulated segments of the chain and suggests that government-sponsored standardization may need to get reconciled with market practices.

Keywords: Natural gas; Canada; Commodity chain; Modularity; Risk (search for similar items in EconPapers)
JEL-codes: L1 Q4 (search for similar items in EconPapers)
Date: 2012
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