Modeling energy facility regulatory compliance with application to multi-scale liquefied natural gas facilities

Lauro J. Martinez (), Shital A. Thekdi () and James H. Lambert ()
Additional contact information
Lauro J. Martinez: Consejo Nacional de Ciencia y Tecnologia
Shital A. Thekdi: University of Richmond
James H. Lambert: University of Virginia

Environment Systems and Decisions, 2013, vol. 33, issue 3, 404-412

Abstract: Abstract Negotiation for permitting and regulatory compliance of energy facilities typically involves complex decision making over multiple planning horizons involving several organizations with possibly competing goals. Delays in compliance negotiation have the potential to undermine or deter the ability for countries and agencies to increase energy capacities and improve overall energy security. There is need for a multi-scale modeling framework with recognition of multiple time horizons, geographies, and organizational entities influencing the system. This paper presents a multi-scale analysis of the review and permitting process for repeated stages of interaction between a private energy operator and an energy regulatory agency. The interaction is modeled as a finitely repeated incomplete information game with identification of steady-state equilibrium conditions. The result is a strategy-guiding tool that can be used to identify potential incentives for cooperation among a variety of decision makers including energy policy decision makers, regulatory agencies, and project developers. The tools are described via a simplified demonstration applied to the permitting of liquefied natural gas terminals in various stages of their lifecycle. There is wide applicability for regulation, approval, deployment, and monitoring of infrastructure and environment in the energy industry.

Keywords: Multi-scale decision making; Finitely repeated games; Liquefied natural gas; Permitting process; Negotiation theory; Regulatory analysis; Energy security (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1007/s10669-013-9457-2 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:envsyd:v:33:y:2013:i:3:d:10.1007_s10669-013-9457-2

Ordering information: This journal article can be ordered from
https://www.springer.com/journal/10669

DOI: 10.1007/s10669-013-9457-2

Access Statistics for this article

More articles in Environment Systems and Decisions from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().