Natural gas deregulation: the need for further reform

Journal Article · · J. Policy Anal. Manage.; (United States)

DOI:https://doi.org/10.2307/3323258· OSTI ID:5059758

Broadman, H G

As with attempts at achieving effective regulation of economic activity where it is warranted, deregulation can entail hidden complexities and produce unintended outcomes. The principle that deregulation begets second order effects that may necessitate further regulator reform is epitomized in the case of natural gas. The author shows how the partial deregulation of natural gas wellhead markets under the Natural Gas Policy Act of 1978 caused a variety of distortions to emerge in other segments of the industry. Because the distortions are mutually reinforcing, no single policy, such as immediate decontrol of old gas or subjecting pipeline companies to common carrier obligations, will solve all of them; rather an integrated program of regulatory reform is required. The author concludes by outlining such a program and commenting on how its implementation through administrative and legislative actions should be carried out in order to reduce the need for further reform in the future.

• OSTI ID: 5059758
• Journal Information: J. Policy Anal. Manage.; (United States), Journal Name: J. Policy Anal. Manage.; (United States) Vol. 5:3; ISSN JPAMD
• Country of Publication: United States
• Language: English

Related Subjects

03 NATURAL GAS
030600* -- Natural Gas-- Economic
Industrial
& Business Aspects
031000 -- Natural Gas-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
294003 -- Energy Planning & Policy-- Natural Gas
ADMINISTRATIVE PROCEDURES
DEREGULATION
ECONOMIC IMPACT
ECONOMIC POLICY
ENERGY SOURCES
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
GOVERNMENT POLICIES
INDUSTRY
LAWS
LEGISLATION
NATIONAL ENERGY ACT
NATURAL GAS
NATURAL GAS INDUSTRY
NATURAL GAS POLICY ACT
PRICES
WELLHEAD PRICES