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Problem Orientated Analysis on China’s Shale Gas Policy

Author

Listed:
  • Zhong Wang

    (College of Management Science, Chengdu University of Technology, Chengdu 610059, China)

  • Yuyan Luo

    (College of Management Science, Chengdu University of Technology, Chengdu 610059, China
    Post-doctorate R&D Base of Management Science and Engineering, Chengdu University of Technology, Chengdu 610059, China)

  • Pengchong Li

    (College of Management Science, Chengdu University of Technology, Chengdu 610059, China)

  • Xiaoqian Cai

    (College of Management Science, Chengdu University of Technology, Chengdu 610059, China)

Abstract

China has accelerated the pace of shale gas development from 2010. A series of policies were issued by the Chinese government to motivate and regulate shale gas exploration and exploitation. In order to investigate the effectiveness of these policies and provide reference to the policymakers, the most relevant policies from 2010 to 2016 were collected and analyzed. Our study summarized that, in total, eight government agencies issued 25 related policies, which cover all the main problems that impede China’s shale gas industry. With the aid of these policies, the approved research and development (R&D) funds exceed 350 million Chinese yuan (CNY) ($55 million), and over 80 domestic companies participated in exploration rights bidding and nine foreign companies initiated thirteen international cooperation projects. In 2016, China’s shale gas production reached 7.88 × 10 9 m 3 , ranking third in the world. However, these policies still have some shortcomings, such as low environmental concerns, weak financial stimulus, and inefficient implementation. Therefore, we suggest that future policy should put particular emphasis on (1) formulating special environmental regulations and determining development scale based on water resource; (2) providing detailed implementation plans and maintaining stable subsidy; (3) enhancing communication and supervision; and (4) establishing a public big data platform.

Suggested Citation

  • Zhong Wang & Yuyan Luo & Pengchong Li & Xiaoqian Cai, 2018. "Problem Orientated Analysis on China’s Shale Gas Policy," Energies, MDPI, vol. 11(11), pages 1-17, October.
    • Handle: RePEc:gam:jeners:v:11:y:2018:i:11:p:2962-:d:179569
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    References listed on IDEAS

    as
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    5. Yang, Yan & Wang, Limao & Fang, Yebing & Mou, Chufu, 2017. "Integrated value of shale gas development: A comparative analysis in the United States and China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 76(C), pages 1465-1478.
    6. Yuan, Jiehui & Luo, Dongkun & Xia, Liangyu & Feng, Lianyong, 2015. "Policy recommendations to promote shale gas development in China based on a technical and economic evaluation," Energy Policy, Elsevier, vol. 85(C), pages 194-206.
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    9. Yu, Chin-Hsien & Huang, Shih-Kai & Qin, Ping & Chen, Xiaolan, 2018. "Local residents' risk perceptions in response to shale gas exploitation: Evidence from China," Energy Policy, Elsevier, vol. 113(C), pages 123-134.
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    Cited by:

    1. Kui Xiang & Liangjun Yan & Gang Yu & Xinghao Wang & Yuanyuan Luo, 2022. "Research on Rock Minerals and IP Response Characteristics of Shale Gas Reservoir in Sichuan Basin," Energies, MDPI, vol. 15(17), pages 1-14, September.
    2. Liu, Jianye & Li, Zuxin & Luo, Dongkun & Duan, Xuqiang & Liu, Ruolei, 2020. "Shale gas production in China: A regional analysis of subsidies and suggestions for policy," Utilities Policy, Elsevier, vol. 67(C).

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