Theories of irreversible investment suggest a negative relation between investment and uncertainty,and non-linear adjustment costs open for asymmetries in the adjustment of fixed capital. We proposean econometric modelling approach to estimate and test the key predictions of modern...

Shortages of rigs and personnel have encouraged creativity in designing incentive contracts in thedrilling sector. In particular for oil service contracts, since those companies have the most directcontrol of drilling efficiency. A large variety of contract types are in use, including within...

This paper measures the extent to which prices exceed marginal costs in the U.S. natural gas distributionmarket during the period 1991-2007. We find large departures from marginal cost pricing in all 50states, with residential and commercial customers facing average markups of over 40%. Based...

We propose a variant of the incomplete contract framework to analyze strategicinvestment in international transport networks, where investment is observable andsome, but not all, players cannot make long-term commitments regarding accessto their transport infrastructure. Those players who can...

Mit dem nachfolgenden Bericht wird eine Studie des Instituts für Zukunftsstudien undTechnologiebewertung (IZT) im Auftrag des Berliner Gasversorgers GASAG dokumentiert,in der es um die Standortbestimmung und die zukunftsweisende Orientierung desUnternehmens vor dem Hintergrund der...

We develop a dynamic model of strategic investment in the Eurasian transport system fornatural gas. In the absence of international contract enforcement, countries may distortinvestment in order to increase their bargaining power, resulting in underinvestment incheap and/or overinvestment in...

This report addresses the needs of state policymakers to understand the implications to the state’s economy from current levels of energy supply imports. Historical energy consumption patterns for the state and the role of energy in the performance of the Iowa economy are reviewed using...