Gordian knot of natural-gas-prices

Journal Article · Fri Oct 01 00:00:00 EDT 1982 · Energy J.; (United States)

OSTI ID:6868377

Jacoby, H D ^[1]; Wright, A W

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1. Massachusetts Inst. of Tech., Cambridge

An effort to change natural gas pricing policy will introduce efficiency and equity complexities comparable to untying the Gordian Knot. The authors examine these problems and suggest four policy options for dealing with them: (1) immediate decontrol of all wellhead prices; (2) do nothing; (3) amend or replace the Natural Gas Policy Act (NGPA) to control new-new gas and phase up old gas prices; and (4) either raise and unify regulated gas prices or do nothing. The first option would be the most-efficient, but politically impractical. Doing nothing would be the worse course. A politically viable approach of decushioning, phasing-up, and matching windfall taxes over three years might work even though it leaves the NGPA, the cause of the complexities, in place. 15 references, 2 tables. (DCK)

• OSTI ID: 6868377
• Journal Information: Energy J.; (United States), Vol. 3:4
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING
POLICY AND ECONOMY
03 NATURAL GAS
DEREGULATION
POLITICAL ASPECTS
NATURAL GAS
PRICES
NATURAL GAS POLICY ACT
ENERGY SOURCES
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
INSTITUTIONAL FACTORS
LAWS
NATIONAL ENERGY ACT
294003* - Energy Planning & Policy- Natural Gas
030600 - Natural Gas- Economic
Industrial
& Business Aspects