Implementation of the Hogan, Rosells(r)n, and Vogelsang (HRV) incentive mechanism into the InTraGas model

摘要

The European natural gas market is characterised by higher demand than available supply from own resources. Therefore Europe is a gas net-importing region. The costs of potential problems or disruptions establish the need for an environment which stimulates sucient investments in trans- mission line capacities. We examine the eeects of the introduction of the recently developed HRV incentive mechanism into the European natural gas market. In the simulations with GAMS we can conrm all results expected from theory. The validity of this simulation results is conrmed in a struc- tural analysis, which comprised the variation of dfferent exogenous input parameters. Therefore we conclude that the HRV mechanism as a regulatory regime for the European natural gas market would be an advisable alternative, which should be considered in future discussions.