Ownership Separation of the Gas Transportation Network: Theory and Practice
Journal title ECONOMIA DELLE FONTI DI ENERGIA E DELL’AMBIENTE
Author/s Susanna Dorigoni, Federico Pontoni
Publishing Year 2011 Issue 2010/2
Language English Pages 27 P. 57-83 File size 1535 KB
DOI 10.3280/EFE2010-002003
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This article analyzes the pros and cons of ownership separation of the gas transportation network. This analysis is made with a specific test that confronts two pairs of different theoretical approaches on vertical integration. The result of this test shows that no uncontroversial solution can be offered to this problem, since all arguments (be them in favour or against) can be comfortably contrasted by a counterargument. In our view, an effective regulation would solve the problem, even though it has to be highlighted that ownership separation of the gas transportation network is not the key aspect of the gas industry. EU directives, in fact, cannot be applied where the biggest part of the value chain is produced, that is to say beyond the European borders, where an oligopoly operates. Due to its bargaining power, this oligopoly captures almost all the scarcity rent, reducing the scope for market liberalization.
Keywords: Ownership separation, vertical foreclosures; Countervailing powers
Jel codes: L13, L42, L95
Susanna Dorigoni, Federico Pontoni, Ownership Separation of the Gas Transportation Network: Theory and Practice in "ECONOMIA DELLE FONTI DI ENERGIA E DELL’AMBIENTE" 2/2010, pp 57-83, DOI: 10.3280/EFE2010-002003