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The Economics of Natural Gas Storage pp 13–29Cite as

Expected Vs. Observed Storage Usage: Limits to Intertemporal Arbitrage

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Notes

  1. 1.

    Backwardation refers to a situation in which a commodity's future price for future delivery is below the price for immediate delivery.

  2. 2.

    This section draws on previous work where we compare storage operation in the UK and Germany (Neumann and Zachmann, 2008). The basic idea is that a competitive market such as the UK will use natural gas storage according to the theory of storage.

  3. 3.

    In an application to the UK market Hobæk et al. (2008) find a non-linear effect of storage on the relation of spot and futures prices.

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Author information

Authors and Affiliations

  1. DIW (Deutsches Institut für Wirtschaftsforschung), Mohrenstraße 58, 10117, Berlin, Germany

    Anne Neumann

  2. Université Paris, LARSEN (Laboratoire d′Analyse Economique des Réseaux et des Systèmes Energétiques), Sud 11 27 avenue Lombart, 92260, Fontenay aux Roses, France

    Georg Zachmann

Authors
  1. Anne Neumann
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  2. Georg Zachmann
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Correspondence to Anne Neumann .

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    © 2009 Springer-Verlag Berlin Heidelberg

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    Neumann, A., Zachmann, G. (2009). Expected Vs. Observed Storage Usage: Limits to Intertemporal Arbitrage. In: Cretì, A. (eds) The Economics of Natural Gas Storage. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-79407-3_2

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    • DOI: https://doi.org/10.1007/978-3-540-79407-3_2

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    • Print ISBN: 978-3-540-79406-6

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