Allocation of Canadian natural gas to domestic and export markets.

Canadian natural gas is allocated to domestic and export markets using a non-linear optimization model. Efficient near-term prices are low to stimulate consumption and reduce reserves of shut in natural gas. Many near-optimal depletion paths also exist, implying greater importance of non-efficiency criteria for selecting a socially optimal depletion path. Finally, for Canadian consumption decisions through the early 1990s, the value of perfect information about future export prospects is likely small. Mistakes in allocating gas to domestic markets to that time are unlikely to cause serious losses in any of several performance measures, including producer surplus (economic rent). [ABSTRACT FROM AUTHOR]