An Application of Quadratic Programming to the Deregulation of Natural Gas

Abstract

Examines the issue of natural gas deregulation within thecontext of the linear complementarity programming (LCP)format. The LCP model forecasts United States oil, naturalgas, and coal prices and quantities for both the demand andthe supply side. Forecasts are presented on a regionalizedlevel. Validation of the LCP model is achieved byforecasting historical prices and quantities. In addition,the model examines several scenarios concerning the variouspolicy options for the decontrol of natural gas.