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Benefits and Losses for European Countries from the Northern Stream-2 Gas Pipeline: Overview of Estimates by Scientists and Energy Industries

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Abstract—

The Nord Stream 2 (SP-2) project makes it possible to significantly reduce the cost of gas in the European Union (EU) countries. The project has become one of the main international conflicts between Russia and Western Europe on the one hand, and the United States, Poland, the Baltic countries on the other. For the United States, JV-2 is a competitor for its supply of liquefied natural gas (LNG) to Europe. For fruitful participation in the study of these problems and scientific substantiation of the economic and geopolitical advantages of the creation of the SP-2 for the EU, it is necessary to quantitatively assess the benefits and losses obtained from this by different groups of European countries, under different scenarios. Such estimates are available in the studies of German and Hungarian power engineers. This article examines the impact of the SP-2 gas pipeline on the natural gas markets of the EU countries. The novelty of this article lies in the analysis, comparison and critical assessment of the mathematical models and calculation results available in these studies.

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Notes

  1. Our article [3] provides an analysis of the market approach to assessing this impact, set out in the study of German power engineers [1].

  2. It should be noted that the measures of profitability in the model (utility criteria) are of a rather complex nature (they must take into account the possibilities of their own production and consumption of gas, replacing it with alternative energy sources) and are difficult to unambiguously clarify.

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Authors and Affiliations

  1. Institute of Economic Forecasting, Russian Academy of Sciences, Moscow, Russia

    V. A. Volkonsky

  2. Institute of Microeconomics, Moscow, Russia

    A. I. Kuzovkin

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  1. V. A. Volkonsky
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  2. A. I. Kuzovkin
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Correspondence to V. A. Volkonsky.

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Volkonsky, V.A., Kuzovkin, A.I. Benefits and Losses for European Countries from the Northern Stream-2 Gas Pipeline: Overview of Estimates by Scientists and Energy Industries. Stud. Russ. Econ. Dev. 32, 689–694 (2021). https://doi.org/10.1134/S1075700721060162

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  • DOI: https://doi.org/10.1134/S1075700721060162

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