Abstract
This chapter identifies different economic and technological drivers for the convergence of gas and electricity markets in the context of the ongoing market restructuring (i.e., liberalization). The analysis is based on a description of the economic and technological features peculiar to the gas and electricity value chains, and four different categories of market convergence. Market convergence can be related to products and services, regulation, business governance, and technology. Some implications of convergence for the market structure, industrial organization, and regulation are discussed.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Abu-Sharkh, S., Arnold, R. J., Kohler, J., Li, R., Markvart, T., Ross, J. N., Steemers, K., Wilson, P. & Yao, R. 2006. Can microgrids make a major contribution to UK energy supply? Renewable and Sustainable Energy Reviews, 10: 78–127.
Baldwin, N. 2002. Competition, convergence, and consolidation: the new world. Power Engineering Journal, 16: 229–234.
en.wikipedia.org. 2008. Fuel cell – Wikipedia, the free encyclopedia. http://en.wikipedia.org/wiki/Fuel_cell. Date of access: April 28, 2008.
Fai, F. & Von Tunzelmann, N. 2001. Industry-specific competencies and converging technological systems: evidence from patents. Structural Change and Economic Dynamics, 12: 141–170.
Finon, D. & Midttun, A. 2004. Introduction. In D. Finon & A. Midttun (Eds.), Reshaping European Gas and Electricity Industries: 1–10. Oxford: Elsevier Science.
Finon, D., Midttun, A., Omland, T., Mez, L., Ruperez-Micola, A., Nucci, R. D., Soares, I. & Thomas, S. 2004. Strategic configuration: a casuistic approach. In D. Finon & A. Midttun (Eds.), Reshaping European Gas and Electricity Industries: 297–353. Oxford: Elsevier Science.
Gambardella, A. & Torrisi, S. 1998. Does technological convergence imply convergence in markets? Evidence from the electronics industry. Research Policy, 27: 445–463.
Genoud, C., Finger, M. & Arentsen, M. 2004. Energy regulation: convergence through multilevel technocracy. In D. Finon & A. Midttun (Eds.), Reshaping European Gas and Electricity Industries: 111–128. Oxford: Elsevier Science.
Gove, P. B. (Ed.) 1986. Webster's third new international dictionary of the English language unabridged. Springfield: Merriam-Webster.
Greenstein, S. & Khanna, T. 1997. What does industry convergence mean? In D. B. Yoffie (Ed.), Competition In The Age Of Digital Convergence: 201–226. Boston: Harvard Business School Press.
Hirst, E. 1997. Competition can enhance bulk-power reliability. Washington: Electricity Consumers Resource Council.
International Energy Agency (IEA). 2004. World energy outlook 2004. Paris: OECD/IEA.
Jurewitz, J. L. 2001. Business strategies evolving in response to regulatory changes in the US electric power industry. In A. Midttun & D. Finon (Eds.), European Energy Industry Business Strategies: 279–335. Oxford: Elsevier Science.
Künneke, R. W. & Finger, M. 2007. Technology matters: the cases of the liberalization of electricity and railways. Competition and Regulation in Network Industries, 8: 301–334.
North, D. C. 1990. Institutions, institutional change, and economic performance. Cambridge: Cambridge University Press.
Porter, M. 1980. Competitive strategy. New York: The Free Press.
PricewaterhouseCoopers. 2006. Power deals 2006 annual review: mergers and acquisitions activity within the global electricity and gas market. Pricewater-houseCoopers.
Toh, K.-H. 2003. The impact of convergence of the gas and electricity industries: trends and policy implications. http://www.iea.org/Textbase/publications/free_new_Desc.asp?PUBS_ID=918 Date of access: April 28, 2008.
Williamson, O. E. 1996. The mechanisms of governance. New York: Oxford University Press.
Zhang, B. 2002. Understanding impact of convergence on broadband industry regulation: a case study of the United States. Telematics and Informatics, 19: 37–59.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2008 Springer-Verlag Berlin Heidelberg
About this chapter
Cite this chapter
Künneke, R.W. (2008). Convergence of Gas and Electricity Markets: Economic and Technological Drivers. In: Bausch, A., Schwenker, B. (eds) Handbook Utility Management. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-79349-6_16
Download citation
DOI: https://doi.org/10.1007/978-3-540-79349-6_16
Published:
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-79348-9
Online ISBN: 978-3-540-79349-6
eBook Packages: Business and EconomicsBusiness and Management (R0)