2 options
Natural gas pricing in India / Ravindra Dholakia.
Connect to full text Available online
View online- Format:
- Book
- Author/Creator:
- Dholakia, Ravindra, author.
- Series:
- SAGE Knowledge. Cases.
- SAGE Knowledge. Cases
- Language:
- English
- Subjects (All):
- Natural gas--Purchasing--India--Case studies.
- Natural gas.
- Gas industry--Privatization--India--Case studies.
- Gas industry.
- Gas industry--Risk management--India--Case studies.
- Risk management.
- Privatization.
- Natural gas--Purchasing.
- India.
- Genre:
- Case studies.
- Physical Description:
- 1 online resource : illustrations.
- Place of Publication:
- London : SAGE Publications Ltd, 2017.
- System Details:
- text file
- Summary:
- Pricing of natural gas in India suffers from asymmetry because of the presence of limited suppliers having byzantine contracts. The oligopolistic market combined with price regulation results in welfare losses, and market failure. We argue that for the sake of long-term development of natural gas sector in fast developing economies like India, the long-run marginal cost (LRMC) seems to be the most suitable pricing policy. In the case analysis, we present a theoretical framework of calculating LRMC while acknowledging that the conditions necessary for a first-best world rarely exist. We conclude that it is very much possible to gradually move from the existing ad-hoc pricing mechanism to a more robust LRMC regime that takes into account not just the production cost but also a scarcity premium as well as any externalities resulting from the natural-gas fuel cycle. The outcome based on our model compares very well with the one from the Rangarajan Committees formula that got the governments nod recently for fixing of price of indigenously produced natural gas, to be effective from 01st April 2014.
- Notes:
- Originally published: Dholakia, R. (2014). Natural gas pricing in India. ECO0353. Ahmedabad: Indian Institute of Management, Ahmedabad.
- Includes bibliographical references and index.
- No ILL or scholarly sharing allowed.
- Description based on XML content.
- ISBN:
- 9781473991118
- OCLC:
- 1017729323
- Access Restriction:
- Restricted for use by site license.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.