| This thesis examines the effects of competition in the North American interstate natural gas pipeline industry on the price of that commodity. Following the deregulation of the natural gas industry in the early 1990's, new pipelines were built to deliver natural gas to energy-hungry markets. This thesis uses standard empirical methods to demonstrate that the addition of competing pipeline firms delivering natural gas across state and provincial boundaries has led to a decrease in the price of natural gas in those markets affected. The reduction of market power prompted by the addition of new competitors and the consequent beneficial effect on the prices paid by consumers of natural gas proves that the once controversial deregulation of this industry should be considered a success. |
