We develop a dynamic model of strategic investment in a transnational pipeline system. In the absence of international … overinvestment than underinvestment. Calibrating the model to fit the Eurasian pipeline system for natural gas, we find that the …

Russian gas. First, we analyse how the architecture of the transport system determines Russia’s bargaining power vis … Europe. Second, we develop a dynamic model of strategic investment. We find that the failure to include Belarus and Ukraine … in expensive ones. As capacities are increased to gain leverage over transit countries, customers in Western Europe …

The construction of a second Baltic Sea natural gas pipeline from Russia to Germany (Nord Stream 2) is very … Europe. However, DIW Berlin analyses show that the planned pipeline project Nord Stream 2 is not necessary to secure natural … gas supplies for Germany and Europe. The energy consumption forecasts on which the project is based, especially the EU …