Preliminary analysis of the natural gas market-ordering problem

Book · Thu Jan 01 04:00:00 EST 1981

OSTI ID:5835967

Means, R C

Under the 1978 Natural Gas Policy Act, as much as 60% of the nation's gas supply will be free of price controls by 1985. The major negative consequences of this partial deregulation will involve (1) a dramatic increase in the burner-tip gas price, (2) an unintended transfer of wealth to producers of deregulated gas, and (3) a large shift in supplies from the intrastate to the interstate market. Together, these factors could cause a market-ordering problem, depending upon the effectiveness of corrective mechanisms included in the statute: a set of price categories that allows higher prices for new sources of gas, escalator provisions, a deregulation that is both delayed and partial, and incremental pricing. A microeconomic analysis of NGPA's provisions - based on a simplified, nonquantitative model - outlines the possible consequences of partial deregulation and defines the relevant issues as sharply as possible.

• OSTI ID: 5835967
• Country of Publication: United States
• Language: English

Related Subjects

03 NATURAL GAS
030600 -- Natural Gas-- Economic
Industrial
& Business Aspects
031000* -- Natural Gas-- Legislation & Regulations
DEREGULATION
ENERGY SOURCES
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
INDUSTRY
LAWS
NATIONAL ENERGY ACT
NATURAL GAS
NATURAL GAS INDUSTRY
NATURAL GAS POLICY ACT
PRICES
REGULATIONS