Economics of natural gas utilization in developing countries: methodology
After the oil price increases of the 1970s, several developing countries with commercially attractive reserves of natural gas began to use their gas resources for internal domestic and industrial purposes as well as for exports. The key to the efficient use of gas resources is determining the opportunity cost at each point in time of allocating a cubic foot of gas to a particular use. The author provides a method for calculating opportunity costs and applying it to developing countries, where econometric estimates of gas demand functions are usually lacking. The methods consider the exhaustibility of gas reserves and the need for gas-using projects to maximize the aggregate benefits they generate. The correct price depends on whether the supply or the reserve constraint is binding at the time. 6 references, 1 figure.
- Research Organization:
- World Bank, Washington, DC
- OSTI ID:
- 5161075
- Journal Information:
- Energy J.; (United States), Vol. 6:3
- Country of Publication:
- United States
- Language:
- English
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29 ENERGY PLANNING
POLICY AND ECONOMY
DEVELOPING COUNTRIES
FUEL SUBSTITUTION
ECONOMETRICS
NATURAL GAS
ECONOMICS
FUEL CONSUMPTION
CALCULATION METHODS
PRICES
ENERGY CONSUMPTION
ENERGY SOURCES
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
030600* - Natural Gas- Economic
Industrial
& Business Aspects
294003 - Energy Planning & Policy- Natural Gas
292000 - Energy Planning & Policy- Supply
Demand & Forecasting