Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/61312
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dc.contributor.authorNeumann, Anneen_US
dc.contributor.authorNeuhoff, Karstenen_US
dc.date.accessioned2012-08-24en_US
dc.date.accessioned2012-08-24T14:08:54Z-
dc.date.available2012-08-24T14:08:54Z-
dc.date.issued2011en_US
dc.identifier.urihttp://hdl.handle.net/10419/61312-
dc.description.abstractDecarbonisation of energy and transport infrastructure requires significant private sector investments. The natural gas industry has demonstrated such large scale private sector infrastructure investment over the last decades, typically using long-term contractual arrangements. Are therefore institutional frameworks necessary that facilitate long-term contracting or provide regulation reassuring about future resource streams associated with low-carbon infrastructure - or do factors idiosyncratic to natural gas explain the prevalence of long-term contracts in natural gas infrastructure investment? We identify four reasons for the use of long-term contracting arrangements. The transformation of the natural gas industry and regulatory structure has gradually reduced the rational for three of these reasons, suggesting that remaining rational, securing of revenue streams to finance investments has become the main motivation for the use of long-term contracts. This rational is not idiosyncratic to the natural gas industry, and thus suggests that long-term contracting can also play a significant role in facilitating low-carbon infrastructure investment. We furthermore discuss the role of institutional frameworks necessary for long-term contracting, and identify the significant role governments have been playing in sharing the counterparty risk inherent in long-term contracts.en_US
dc.language.isoengen_US
dc.publisher|aDeutsches Institut für Wirtschaftsforschung (DIW) |cBerlinen_US
dc.relation.ispartofseries|aDIW Discussion Papers |x1154en_US
dc.subject.jelL78en_US
dc.subject.jelO13en_US
dc.subject.jelQ58en_US
dc.subject.ddc330en_US
dc.subject.keywordInvestmenten_US
dc.subject.keywordlow-carbon economyen_US
dc.subject.keywordnatural gasen_US
dc.titleFacilitating low-carbon investments: Lessons from natural gasen_US
dc.typeWorking Paperen_US
dc.identifier.ppn72220776Xen_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:diw:diwwpp:dp1154en_US

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