 Policy measures targeting a more integrated gas market: Impact of a merger of two trading zones on prices and arbitrage activity in FranceEkaterina Dukhanina, Olivier Massol and François Lévêque Energy Policy, 2019, vol. 132, issue C, 583-593 Abstract: Under way to a European integrated energy market, policymakers need to find efficient measures aimed at increasing liquidity in local natural gas markets. The paper answers the question whether a merger of gas trading zones contributes to the development of liquid trading activities through a more efficient allocation and pricing of natural gas and an increased competition between market players. We analyse the effects of a policy decision to merge two gas trading zones in France on the observed degree of spatial market integration and the efficiency of the spatial arbitrage activity between the northern and southern French gas markets. An extended parity bounds model confirms a positive impact of the zone merger on the market's spatial equilibrium and indicates the causes of remaining market inefficiencies. The model offers a tool for the assessment of the efficiency of policy decisions in the context of policy initiatives to create an integrated and liquid natural gas market in Europe. Keywords: Natural gas; Market integration; Spatial equilibrium; Merger of market zones (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:132:y:2019:i:c:p:583-593 DOI: 10.1016/j.enpol.2019.05.044 Access Statistics for this article Energy Policy is currently edited by N. France More articles in Energy Policy from Elsevier |
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