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

Jianzhong Xiao, Jinhua Cheng, Jun Shen and Xiaolin Wang
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Jianzhong Xiao: School of Economics and Management, China University of Geosciences, Wuhan 430074, China
Jinhua Cheng: School of Economics and Management, China University of Geosciences, Wuhan 430074, China
Jun Shen: School of Economics and Management, China University of Geosciences, Wuhan 430074, China
Xiaolin Wang: School of Economics and Management, China University of Geosciences, Wuhan 430074, China

Energies, 2017, vol. 10, issue 2, 1-19

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.

Keywords: natural gas industry; system dynamics modeling; exploitation and exploration; China (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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