Arbeitspapier
Trade with Endogenous Transportation Costs: The Value of LNG Exports
This paper investigates the economic value of trade when prices of transportation services are endogenous to cross-market price spreads. This is relevant for liquefied natural gas (LNG) exports. LNG transportation capacity is limited in the short-run, and long lead-times are involved in extending the transportation infrastructure. We establish empirically that LNG transportation costs have been endogenous to regional gas prices spreads. As such, transportation service providers have been able to capture part of the price spread. We proceed to develop a method to value LNG exports under conditions of endogenous transportation costs and market integration. We use this method to quantify the effect of endogenous transportation costs on the value of LNG exports from the US to Japan. Our analysis shows that when transportation costs are correctly treated as endogenous, the LNG export benefit can drop by as much as 20-50% relative to the case of exogenous cost.
- Sprache
-
Englisch
- Erschienen in
-
Series: CESifo Working Paper ; No. 5222
- Klassifikation
-
Wirtschaft
Trade Policy; International Trade Organizations
Renewable Resources and Conservation: Issues in International Trade
Energy: Government Policy
- Thema
-
LNG
natural gas
export
trade policy
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Oglend, Atle
Osmundsen, Petter
Kleppe, Tore Selland
- Ereignis
-
Veröffentlichung
- (wer)
-
Center for Economic Studies and ifo Institute (CESifo)
- (wo)
-
Munich
- (wann)
-
2015
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Oglend, Atle
- Osmundsen, Petter
- Kleppe, Tore Selland
- Center for Economic Studies and ifo Institute (CESifo)
Entstanden
- 2015
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