Economics at your fingertips  

Hold-Up Problems in International Gas Trade: A Case Study

Guych Nuryyev, Tomasz Korol and Ilia Tetin
Additional contact information
Guych Nuryyev: Department of International Finance, I-Shou University, Kaohsiung 84001, Taiwan
Tomasz Korol: Faculty of Management and Economics, Gdansk University of Technology, 80-233 Gdansk, Poland
Ilia Tetin: Department of International Finance, I-Shou University, Kaohsiung 84001, Taiwan

Energies, 2021, vol. 14, issue 16, 1-16

Abstract: The infrastructure required for international natural gas trade is considerable, which often leads to hold-up problems and supply disruptions. This study discusses disruptions of gas supply from Algeria, Indonesia, Russia, and Turkmenistan since the early 1980s. The novelty of this study is its focus on the issues related to transit countries, which are rarely considered in the literature. The results of the study classify supply disruptions into six types, show the evolution of supply disruptions over time, and discuss mitigation strategies. The six types of disruptions include political change, price demands, debts, technical issues, transit fees, theft of gas. The evolution of the disruptions shows that the issues related to transit countries have become more frequent in the last two decades. Mitigation strategies tailored to transit countries include using an international organisation, designing contracts with price mechanisms that might reduce the possibility of disputes and reducing the number of parties involved in the trade.

Keywords: hold-up problem; natural gas; transit country; gas wars (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link) (application/pdf) (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Energies is currently edited by Mr. Addison Su

More articles in Energies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().

Page updated 2023-05-18
Handle: RePEc:gam:jeners:v:14:y:2021:i:16:p:4984-:d:614180