*********************************
There is now a CONTENT FREEZE for Mercury while we switch to a new platform. It began on Friday, March 10 at 6pm and will end on Wednesday, March 15 at noon. No new content can be created during this time, but all material in the system as of the beginning of the freeze will be migrated to the new platform, including users and groups. Functionally the new site is identical to the old one. webteam@gatech.edu
*********************************
Atlanta, GA | Posted: December 2, 2015
Jade Hill, Communications Coordinator
Summary Sentence:
Dr. Matthew Oliver has published an article about expansion costs in natural gas transmission in Energy Economics.
Full Summary:
No summary paragraph submitted.
Matthew OliverThe current issue of Energy Economics features an original research article by Dr. Matthew E. Oliver of the Georgia Tech School of Economics. The article, entitled "Economies of Scale and Scope in Expansion of the U.S. Natural Gas Pipeline Network," describes an empirical analysis of cost, capacity, mileage, and technical data for 254 United States' natural gas pipeline projects over the period 1997-2012. Dr. Oliver estimates cost elasticities with respect to pipeline capacity and length, finding that large pipeline projects are likely to exhibit significant cost diseconomies. His conclusion is that due to cost structure of network expansion projects,
"...pipeline tariffs based on cost-of-service pricing likely present a disincentive for prospective pipeline customers to commit to long-term contracts - which are necessary for the pipeline to acquire regulatory permission to build - particularly for large, long-distance expansion projects. The implication is that cost-of-service pricing may inhibit network expansion, exacerbating congestion issues."
For more information or to read this article, click here.
