Recent regulatory changes permitted natural gas pipelines to become “open access” transporters. This change in pipeline carrier status dissolved regulatory barriers to markets. This paper describes the institutions that were developed to support exchange in gas markets and observes and evaluates their emergence, evolution, and performance. The institutional and empirical evidence reveals that gas markets rapidly emerged with the dissolution of regulatory barriers. Spot gas prices converged and became highly correlated. A national market for natural gas developed within four years.
No takes yet. Share an insight, caveat, or question.
Vany et al. (1994) studied this question.
Synapse has enriched 5 related papers. Consider them for comparative context: