The Economic Theory of Enhanced Natural Gas Service to the Industrial Sector: An Applied Approach

摘要

The interaction of gas storage and interruptable industrial gas service is numerically illustrated in this report. Cost functions, demand functions, and tariff structures are defined, estimated, or postulated, as appropriate. Through use of a computer program developed for the study, 48 combinations of simulated cost, demand and tariff conditions, and marketing strategies are examined. The simulations indicate the demand conditions under which gas storage or industrial gas service interruptions are most likely to be desirable on the basis of economic efficiency. The results also indicate the distribution among user classes of the benefits of storage and interruptions.