Policy Analysis of Natural Gas Export to India-Pakistan Countries, A Game Theoretic Approach

Following paper explores Iran's optimal policy about exporting natural gas to neighboring countries. Taking this matter to account, we can study Iran-Pakistan-India gas contract know as peace pipeline as one of the major energy transport projects. We also have to consider Russia Federation’s behavior which is the most important gas exporter. Peace pipeline contract is one of the most important projects in Iran. By using a framework of game theory, coalition among natural gas exporters and transmitters for the IPI Project has been explored. Iran and Russia Federation are two potential gas exportering countries. In this paper we answer the question whether the two countries should go to a coalition in exporting gas to Pakistan-India or not. By having outcomes of this study one may conclude that both countries have few profits in forming a coalition for exporting gas through the IPI project. Historical behavior of Russian federations regarding for the Project is a significant factor in leading to this outcome.