In this paper, we propose a one-factor regime-switching model for the risk adjusted natural gas spot price and study the implications of the model on the valuation and optimal operation of natural gas storage facilities. We calibrate the model parameters to both market futures and options on futures. Calibration results indicate that the regime-switching model is a better fit to market data com...

this paper focuses on the residential sector demand for electricity, natural gas and petroleum products (kerosene, gas oil and lpg) in iran in the context of a popular locally flexible functional forms - “the almost ideal demand system (aids)”. we pay explicit attention to the theoretical regularity conditions of positivity, monotonicity, and curvature. we treat the curvature property as a main...

Data from 15 European countries is analysed to provide novel estimates of daily own-price, cross-price and income elasticities natural-gas-demand 2016 2020. The results show that: first, there a strong-seasonal component in the October–February period during which residential-demand has higher share on total demand, gas price not determinant factor for most countries. This seasonal profile make...