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A System Dynamics Analysis of Investment, Technology and Policy that Affect Natural Gas Exploration and Exploitation in China

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  • Jianzhong Xiao

    (School of Economics and Management, China University of Geosciences, Wuhan 430074, China
    Resources and Environment Economic Research Center, China University of Geosciences, Wuhan 430074, China)

  • Jinhua Cheng

    (School of Economics and Management, China University of Geosciences, Wuhan 430074, China
    Resources and Environment Economic Research Center, China University of Geosciences, Wuhan 430074, China)

  • Jun Shen

    (School of Economics and Management, China University of Geosciences, Wuhan 430074, China
    Resources and Environment Economic Research Center, China University of Geosciences, Wuhan 430074, China)

  • Xiaolin Wang

    (School of Economics and Management, China University of Geosciences, Wuhan 430074, China
    Resources and Environment Economic Research Center, China University of Geosciences, Wuhan 430074, China)

Abstract

Natural gas has an increasing role in Chinese energy transformation. We present a system dynamics model of the natural gas industry in China. A new system dynamics model for natural gas companies based on reserve exploration and well construction as well as investment dynamics is proposed. The contribution of the paper is to analyze the influence of technology, investment and policy factors on the natural gas industry. We found that the dynamics of the main variables, including gas policy, cost of investment, accounting depreciation and exploitation technology, are sensitive to the sustainable development of resources. The simulations and results presented here will be helpful for government to reform policies, and for upstream companies to make decisions.

Suggested Citation

  • Jianzhong Xiao & Jinhua Cheng & Jun Shen & Xiaolin Wang, 2017. "A System Dynamics Analysis of Investment, Technology and Policy that Affect Natural Gas Exploration and Exploitation in China," Energies, MDPI, vol. 10(2), pages 1-19, January.
    • Handle: RePEc:gam:jeners:v:10:y:2017:i:2:p:154-:d:88741
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    References listed on IDEAS

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    Cited by:

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    4. Wai-Ming To & Peter K. C. Lee & Chi To Ng, 2017. "Factors Contributing to Haze Pollution: Evidence from Macao, China," Energies, MDPI, vol. 10(9), pages 1-12, September.

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