Volume 1
Some Political Economy of Global Warming
After recent disillusions, international climate change negotiations need to be jumpstarted. This paper first argues that countries’ strategic positioning will increase the cost of delay beyond that associated with the classic free-riding problem. It then investigates the governance of an agreement and the design of negotiation and compensation, emphasizing political economy considerations. The paper concludes…
Rethinking Gas Markets–and Capacity
The “U.S. Model” of natural gas markets is based on long-term, point-to-point commercial capacity rights (MDQXY) that reflect the physical capacity of the pipeline and are traded frequently among system users (shippers) in markets independent of the transmission system operator (TSO). When physical capacity is complex and scarce and the gas market is dynamic there…
Book Reviews
Marginal Costs with Wings a Ball and Chain Pipelines and Institutional Foundations for the U.S. Gas Market
The United States has highly competitive gas markets (spot and futures), showing prices in recent years that have definitively diverged from world oil prices. Those gas markets were not “built” in the manner of administered electricity markets. Rather, they were the result of a revolution in federal pipeline regulation designed purposely to free the gas…