Cross-border constraints, institutional changes and integration of the Dutch-German gas market

Gerard Kuper and Machiel Mulder

No 13004-EEF, Research Report from University of Groningen, Research Institute SOM (Systems, Organisations and Management)

Abstract: We estimate the contribution of institutional changes in the Dutch and German gas markets to the integration of these markets. We measure this contribution through the impact of bottlenecks in the cross-border infrastructure on cross-border price differences. In the period 2007-2011, the differences in both price levels and price volatility between these two markets decreased. We find evidence that institutional changes in the Dutch market, in particular the abolishment of the obligation to book quality-conversion capacity, have reduced the impact of cross-border infrastructure bottlenecks on regional price differences. The integration of German regional networks into larger systems, however, appear to have had a negative effect on the integration with the Dutch market.

Date: 2013
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Journal Article: Cross-border constraints, institutional changes and integration of the Dutch–German gas market (2016)
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