Prorationing is used as a textbook definition of a solution to the market failure presented by the common pool aspects of oil and natural gas (see, for example, Spulbur 1989, 59). Yet, at the same time, the academic literature on this question is severely limited. To fill this void, we analyze a...

All but one of U.S. power markets administered by Regional Transmission Operators require that sellers of power to end-users must own or have contractual access to generation capacity sufficient to cover their loads. The exception is the Electricity Reliability Council of Texas (ERCOT), which...

We investigate the impact of creating Independent System Operators (ISOs) to independently manage regional electricity transmission resources and institute regional electricity exchange markets. Our analysis examines how the formation of the PJM Independent System Operator (ISO) in Pennsylvania,...

Horizontal drilling together with hydraulic fracturing has become a very effective mechanism for the extraction of natural gas in several shale plays in the United States. Efficient horizontal drilling, however, generally requires operating in a “unit,” across the property of numerous...

Oil and gas production has long been a fixture of southern states such as Texas and Oklahoma, but its origins lie in the northeast. After a long dormancy, states such as Pennsylvania are witnessing a natural gas boom brought on by advances in hydraulic fracturing technology. The resurgence has...

This study proposes a new method for creating futures market for natural gas in East Asia, using what we refer to as “open access tankers.” Japan, the largest consumer of liquefied natural gas (LNG) in the world, is considering restructuring its natural gas markets to allow competition....

This volume explores how Texas's groundbreaking program of electricity restructuring has become a model for truly competitive energy markets in the United States.

This volume explores how Texas's groundbreaking program of electricity restructuring has become a model for truly competitive energy markets in the United States.

Regulators are increasingly pursuing their policy objectives by creating markets. To create a policy market, regulators require firms to procure a product that is socially useful but that confers little direct private benefit to the acquiring party. Examples of policy markets include pollutant...