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Multi-stakeholder equilibrium-based subsidy allocation mechanism for promoting coalbed methane scale extraction-utilization

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  • Fan, Lurong
  • Ma, Ning
  • Zhang, Wen

Abstract

As one of the most important methods for extracting CBM, surface mining was rarely explored from a policy incentive or management optimization perspective, which has significantly limited the scale development of the CBM industry. To deal with this problem, a multi-stakeholder equilibrium-based subsidy allocation mechanism was developed to promote CBM extraction and utilization. Considering the higher methane concentrations and more mature technology in the surface mining process, the proposed mechanism involves a competitive subsidy allocation mechanism and larger investment to deal with the significant operational cost pressures. Compared with the traditional uniform unit subsidy policy, the allocation mechanism allows enterprises to access an extra higher subsidy if they increase output. To enhance the applicability of the subsidy allocation mechanism, the complex interactions between the multiple stakeholders were integrated into the proposed strategy using a bi-level programming method, and a trade-off between energy utilization and expenditure control was achieved using multiple objective theory. The application results showed that the subsidy allocation strategy could promote CBM surface mining utilization, and further analyses indicated that setting a high satisfaction degree and low energy targets could enhance energy utilization. The research in this paper provides an important reference for the promotion of CBM scale utilization.

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  • Fan, Lurong & Ma, Ning & Zhang, Wen, 2023. "Multi-stakeholder equilibrium-based subsidy allocation mechanism for promoting coalbed methane scale extraction-utilization," Energy, Elsevier, vol. 277(C).
    • Handle: RePEc:eee:energy:v:277:y:2023:i:c:s036054422300974x
    DOI: 10.1016/j.energy.2023.127580
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