Inter-Organizational Trust as a Shift Parameter in the Extended Transaction Cost Framework: A first Application to the LNG Industry.

This paper provides an empirical analysis examining the effect of both transaction characteristics and the institutional environment on governance choice. Using a dataset of 237 corporate-specific value chains in the global LNG industry, we introduce inter-organizational trust as a shift parameter. Following transaction cost economics, it is hypothesized that specific investments under uncertainty provide incentives to integrate vertically. Second, it is argued that inter-organizational trust changes the relative costs of vertical integration and non-integration and supports less hierarchical organizational structures. These economic relationships are tested based on probit and ordered probit models. Estimation results provide broad support for both propositions.Inter-organizational trust, liquefied natural gas, shift parameter, transaction cost economics, vertical integration

VHF radar measurements in the summer polar mesosphere

Measurements in the mesosphere over Andoya/Norway (69 N, 16 E) were carried out using the mobile SOUSY-VHF radar with an extended beam configuration during the MAC/SINE campaign in summer 1987. First results of a 48 h and a 3 h observational period for heights between about 83 and 91 km are presented. Zonal mean winds are characterized by a strong westward flow of up to 50/ms, whereas the equatorward directed meridional component is weaker. The dominating semidiurnal tide has amplitudes up to 30/ms and a vertical wavelength of about 55 km. The diurnal tide is less pronounced. The total upward flux of horizontal momentum takes values of -2 sq m/sq s near 84 km and increases with increasing height, reaching a maximum value of 22 sq m/sqs for both the zonal and meridional components. However, measurements of the horizontal isotropy of the wave field suggest significant anisotropy. The major contribution to the momentum flux is from the 10 min to 1 h period range below about 87 km, and from the 1 to 6 h period range above this height

VHF radar measurements over Andoya (Northern Norway)

The Mobile SOUSY Radar was operated during the MAP/WINE, the MAC/SINE, and MAC/Epsilon campaigns at Andoya in Northern Norway. A comparison between summer and winter results is presented, in particular the generation and development of the scattering regions, the different power spectral densities and the aspect sensitivities which were derived from six different beam directions

Public Support for the Financing of RD&D Activities in New Clean Energy Technologies

Several market failures, as well as other technical, economic and regulatory barriers to the market penetration of clean energy technologies result in under-investment of private innovators in RD&D. Therefore, public support is needed in order to induce innovations. Policy tools creating market conditions that are attractive for the exploitation of clean technologies (market pull) must be combined with other tools directly supporting the development of these technologies through the provision of public funds (technology push). Thereby, financing policy instruments should be chosen so that their characteristics match with those of the specific innovation process being targeted at the same time that social welfare is maximized. We develop an analytical framework to define the form of public support and to provide recommendations on the optimal choice of both technology push and market pull instruments.clean energy technologies; innovation finance; public support; technology push; market pull

Phase diagram of neutral quark matter at moderate densities

We discuss the phase diagram of moderately dense, locally neutral three-flavor quark matter using the framework of an effective model of quantum chromodynamics with a local interaction. The phase diagrams in the plane of temperature and quark chemical potential as well as in the plane of temperature and lepton-number chemical potential are discussed.Comment: 32 pages, 11 figures; contribution to the proceedings of the INT workshop "Pairing in fermionic systems", Seattle, September 19-23, 200

TSO-TSO-DSO Cooperation: How to align System Operation in Future Power Markets?

With increasing variability of demand and supply, transmission system operators (TSOs) across Europe adapt their internal processes and operational approaches. These processes comprise different interfaces with other market participants (e.g. via balancing markets, reserve procurement or NTC calculation). However, currently internal TSO approaches and market interfaces differ widely among TSOs in Europe. Different methods of reserve procurement, balancing rules, gate closure and algorithms for market clearing prevail. The Target Model aims at improving this situation and therefore is concerned with the definition and alignment of market protocols for these different interfaces. However, currently the focus lies on information exchange and to some extent a standardization of balancing energy products. Placing the core of TSO operation itself, also for system-services and internal market clearing processes, in the center of the debate, could lead to additional benefits both with respect to cross-border network operation as well as cross-border energy trade

Gas and Electricity Market Design for a Flexible Operation of Gas-fired Power Plants

Gas‐fired power plants constitute a direct and important link between the gas and the electricity sectors and thus between the Target Models for electricity and gas. As the need for a flexible operation of gas-fired power plants will increase in tomorrow’s low‐carbon power markets, so also will the challenges for market design of both sectors in allowing for flexible trading arrangements. For the electricity markets, options to advance intraday and balancing market design are currently discussed, such as complex bids, the frequency of intraday and balancing market clearing, and the joint optimization of energy and reserve markets. For the gas market, concrete options for design advances are yet to be explored. The success – and the flaws – of the implementation of the new EC Network Codes for gas will provide new food for debates. Last, the interaction between gas and electricity TSOs in balancing the heavily interlinked short-term electricity and gas markets poses a need for (more) coordination between the different types of TSOs

The phase diagram of neutral quark matter: The effect of neutrino trapping

We study the effect of neutrino trapping on the phase diagram of dense, locally neutral three-flavor quark matter within the framework of a Nambu--Jona-Lasinio model. In the analysis, dynamically generated quark masses are taken into account self-consistently. The phase diagrams in the plane of temperature and quark chemical potential, as well as in the plane of temperature and lepton-number chemical potential are presented. We show that neutrino trapping favors two-flavor color superconductivity and disfavors the color-flavor-locked phase at intermediate densities of matter. At the same time, the location of the critical line separating the two-flavor color-superconducting phase and the normal phase of quark matter is little affected by the presence of neutrinos. The implications of these results for the evolution of protoneutron stars are briefly discussed.Comment: 10 pages, 9 figures, references added; version accepted for publication in Phys. Rev.

THINK Half-Way and Beyond

THINK is a Think Tank advising the European Commission on mid- and long-term energy policy. QM-32-12-022-EN-C (print) QM-32-12-022-EN-N (digital)Energy regulation and policy currently belong to the most important and developing areas in the European Union. THINK, the Florence School of Regulation’s (EUI) think tank advises the European Commission (DG Energy) on Energy Policy and presents policy options each semester. This booklet gives an overview of all the THINK results for the first 18 months of the project focusing on 6 topics: 1. Public Support for the Financing of RD&D Activities in New Clean Energy Technologies 2. Smart Cities Initiative: Fostering a Quick Transition Towards Local Sustainable Energy Systems 3. Transition Towards a Low Carbon Energy System by 2050: What Role for the EU? 4. The Impact of Climate and Energy Policies on the Public Budget of EU Member States 5. Off-Shore Grids: Towards a Least Regret EU Policy 6. EU Involvement in Electricity and Natural Gas Transmission Grid Tarification.The THINK project (2010-2013) is funded by the European Commission under the Seventh Framework Programme, Strategic Energy Technology Plan. (Call FP7-ENERGY-2009-2, Grant Agreement no: 249736). Coordinator: Prof. Jean-Michel Glachant and Dr. Leonardo Meeus, Florence School of Regulation, Robert Schuman Centre for Advanced Studies, European University Institute.Foreword 1 Preface 2 Introduction to the THINK Project 4 The Role of the Expert Hearings in the THINK Report Production Process 6 The Role of the Scientific Council in the THINK Report Production Process 8 THINK Report Policy briefs 11 a. Topic 1: Public Support for the Financing of RD&D Activities in New Clean Energy Technologies 13 b. Topic 2: Smart Cities Initiative: How to Foster a Quick Transition Towards Local Sustainable Energy Systems 21 c. Topic 3: Transition Towards a Low Carbon Energy System by 2050: What Role for the EU? 27 d. Topic 4: The Impact of Climate and Energy Policies on the Public Budget of EU Member States 35 e. Topic 5: Offshore Grids: Towards a Least Regret EU Policy 43 f . Topic 6: EU Involvement In Electricity and Natural Gas Transmission Grid Tarification 53 People 61 Scientific Council 63 Florence-based Research Team 7

Changing Contract Structures in the International Liquefied Natural Gas Market : A First Empirical Analysis

Ce papier présente une analyse empirique des contrats de livraison de gaz naturel liquéfié (GNL) à long terme en vue de déterminer la durée des contrats optimale. Nous étudions le compromis entre des coûts du contrat à la suite des négociations bilatérales répétées et le risque d’être lié à un contrat inflexible dans un environnement incertain. En outre, nous ajoutons une analyse de différentes dimensions de la fréquence des transaction et leurs impact à la choix de la forme organisationnelle à la discussion théorétique. Les résultats de l’estimation d’un modèle à deux étages indiquent que la présence de la spécificité des actifs dédiée conduit à des contrats plus longs confirmant les propositions de la théorie des coûts de transactions. Au contraire, le besoin de flexibilité réduit la durée d’un contrat. Avec une ascension de l’expérience des relations bilatérales entre les mêmes partenaires commerciaux, la durée d’un contrat diminue. En plus, on observe que des pays étant fortement dépendants des imports de gaz naturel en forme du GNL sont disposés à céder d’une certaine flexibilité en faveur de la sécurité des approvisionnements. Des contrats dédiés aux marchés compétitifs sont plus courts comparé aux contrats dédiés aux marchés non-liberalisés.This paper provides an empirical assessment of long-term liquefied natural gas (LNG) supply contracts to determine optimal contract duration. We study the trade-off between contracting costs due to repeated bilateral bargaining and the risk of being bound in an inflexible agreement in uncertain environments. Furthermore, we add to the theoretical discussion an analysis of different dimensions of transaction frequency and their impact on governance choice. Estimation results of a two-stage model show that the presence of high dedicated asset specificity results in longer contracts thus confirming the predictions of transaction cost economics, whereas the need for flexibility reduces contract duration. With increasing bilateral trading experience between the same trading partners, contract duration decreases. We additionally observe that countries heavily reliant on natural gas imports via LNG are willing to forgo some flexibility in favor of supply security. Contracts dedicated to competitive downstream markets on average are shorter than those concluded with customers in non-liberalized import markets