Has liquefied natural gas infrastructure development brought about integration between the major global markets for natural gas?
Abstract/Contents
- Abstract
- The last six years have witnessed a dramatic surge in world natural gas prices as demand has outstripped supply. This trend may continue as major economies turn from coal to natural gas to reduce carbon dioxide emissions. Increasing tightness between supply and demand has left isolated markets vulnerable to price shocks, and the flexibility of natural gas supply has become more important to avoid price spikes in stressed markets. This paper provides an update on the degree of integration of the major natural gas markets around the world. Cointegration analysis is used on markets in Japan, Europe, and the U.S. to determine if liquefied natural gas infrastructure development has brought about a global market equilibrium price. Results indicate that while European and U.S. natural gas prices have closely converged, transoceanic market inefficiencies remain, particularly between Japan and both the United States and Europe.
Description
| Type of resource | text |
|---|---|
| Date created | March 2008 |
Creators/Contributors
| Author | Pashelinsky, Jacob | |
|---|---|---|
| Primary advisor | Rothwell, Geoffrey | |
| Degree granting institution | Stanford University, Department of Economics |
Subjects
| Subject | Stanford Department of Economics |
|---|---|
| Subject | Cointegration |
| Subject | Liquefied Natural Gas |
| Genre | Thesis |
Bibliographic information
| Related item | |
|---|---|
| Location | https://purl.stanford.edu/nm548sz0373 |
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- Use and reproduction
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Preferred citation
- Preferred Citation
- Pashelinsky, Jacob. (2008). Has liquefied natural gas infrastructure development brought about integration between the major global markets for natural gas? . Stanford Digital Repository. Available at: https://purl.stanford.edu/nm548sz0373
Collection
Stanford University, Department of Economics, Honors Theses
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