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dc.contributor.authorBrito, Dagobert L.
Rosellón, Juan
dc.date.accessioned 2016-09-19T16:53:22Z
dc.date.available 2016-09-19T16:53:22Z
dc.date.issued 2000
dc.identifier.citation Brito, Dagobert L. and Rosellón, Juan. "Pricing Natural Gas in Mexico: an Application of the Little-Mirrlees Rule." (2000) James A. Baker III Institute for Public Policy of Rice University: http://www.bakerinstitute.org/research/pricing-natural-gas-in-mexico-an-application-of-the-little-mirrlees-rule/.
dc.identifier.urihttps://hdl.handle.net/1911/91545
dc.description The Comision Reguladora de Energia has implemented a netback rule for linking the Mexican market for natural gas with the North American market. This paper describes the economic analysis that supported this policy.
dc.description.abstract The Comisión Reguladora de Energía has implemented a netback rule for linking the Mexican market for natural gas with the North American market. This paper describes the economic analysis that supported this policy. We show that the netback rule is the efficient way to price natural gas and it is in fact an application of the Little-Mirrlees Rule. We also study the implications of this new regulatory framework on Pemex’s marketing activities in the forward market for gas. We argue that PEMEX should be permitted to enter into spot contracts or future contracts to sell gas, however, the price of gas should always be the net back price based on the Houston Ship Channel at the time of delivery. This arrangement is transparent, it is easy to enforce and does not eliminate any legitimate market options for any of the parties involved. PEMEX or consumers of gas can use the Houston market for hedging of speculative transactions.
dc.language.iso eng
dc.publisher James A. Baker III Institute for Public Policy of Rice University
dc.relation.urihttp://www.bakerinstitute.org/research/pricing-natural-gas-in-mexico-an-application-of-the-little-mirrlees-rule/
dc.subjectnatural gas
welfare
pricing
Mexico
regulation
dc.title Pricing Natural Gas in Mexico: an Application of the Little-Mirrlees Rule
dc.type Research paper
dc.type.dcmi Text


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