IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v277y2023ics036054422300974x.html
   My bibliography  Save this article

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

Author

Listed:
  • 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.

Suggested Citation

  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S036054422300974X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2023.127580?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Servranckx, Tom & Vanhoucke, Mario, 2019. "Strategies for project scheduling with alternative subgraphs under uncertainty: similar and dissimilar sets of schedules," European Journal of Operational Research, Elsevier, vol. 279(1), pages 38-53.
    2. Luo, Dongkun & Dai, Youjin, 2009. "Economic evaluation of coalbed methane production in China," Energy Policy, Elsevier, vol. 37(10), pages 3883-3889, October.
    3. Lin, Boqiang & Jiang, Zhujun, 2011. "Estimates of energy subsidies in China and impact of energy subsidy reform," Energy Economics, Elsevier, vol. 33(2), pages 273-283, March.
    4. Nguyen, Thi Anh Tuyet & Chou, Shuo-Yan, 2018. "Impact of government subsidies on economic feasibility of offshore wind system: Implications for Taiwan energy policies," Applied Energy, Elsevier, vol. 217(C), pages 336-345.
    5. Jessica Jewell & David McCollum & Johannes Emmerling & Christoph Bertram & David E. H. J. Gernaat & Volker Krey & Leonidas Paroussos & Loïc Berger & Kostas Fragkiadakis & Ilkka Keppo & Nawfal Saadi & , 2018. "Limited emission reductions from fuel subsidy removal except in energy-exporting regions," Nature, Nature, vol. 554(7691), pages 229-233, February.
    6. Luo, D.K. & Dai, Y.J. & Xia, L.Y., 2011. "Economic evaluation based policy analysis for coalbed methane industry in China," Energy, Elsevier, vol. 36(1), pages 360-368.
    7. Wang, Yadong & Wang, Delu & Shi, Xunpeng, 2022. "Exploring the multidimensional effects of China's coal de-capacity policy: A regression discontinuity design," Resources Policy, Elsevier, vol. 75(C).
    8. Sadeghi, Mehdi & Ameli, Ahmad, 2012. "An AHP decision making model for optimal allocation of energy subsidy among socio-economic subsectors in Iran," Energy Policy, Elsevier, vol. 45(C), pages 24-32.
    9. Tang, Lianhua & Li, Yantong & Bai, Danyu & Liu, Tao & Coelho, Leandro C., 2022. "Bi-objective optimization for a multi-period COVID-19 vaccination planning problem," Omega, Elsevier, vol. 110(C).
    10. Matamala, Yolanda & Feijoo, Felipe, 2021. "A two-stage stochastic Stackelberg model for microgrid operation with chance constraints for renewable energy generation uncertainty," Applied Energy, Elsevier, vol. 303(C).
    11. Zhang, Huiming & Li, Lianshui & Zhou, Peng & Hou, Jianmin & Qiu, Yueming, 2014. "Subsidy modes, waste cooking oil and biofuel: Policy effectiveness and sustainable supply chains in China," Energy Policy, Elsevier, vol. 65(C), pages 270-274.
    12. Nie, Pu-yan & Yang, Yong-cong & Chen, You-hua & Wang, Zhao-hui, 2016. "How to subsidize energy efficiency under duopoly efficiently?," Applied Energy, Elsevier, vol. 175(C), pages 31-39.
    13. Guo, Zixi & Zhao, Jinzhou & You, Zhenjiang & Li, Yongming & Zhang, Shu & Chen, Yiyu, 2021. "Prediction of coalbed methane production based on deep learning," Energy, Elsevier, vol. 230(C).
    14. Boeing, Philipp, 2016. "The allocation and effectiveness of China’s R&D subsidies - Evidence from listed firms," Research Policy, Elsevier, vol. 45(9), pages 1774-1789.
    15. Frey, Elaine F. & Mojtahedi, Saba, 2018. "The impact of solar subsidies on California's non-residential sector," Energy Policy, Elsevier, vol. 122(C), pages 27-35.
    16. Huang, Yuping & Zheng, Qipeng P. & Fan, Neng & Aminian, Kashy, 2014. "Optimal scheduling for enhanced coal bed methane production through CO2 injection," Applied Energy, Elsevier, vol. 113(C), pages 1475-1483.
    17. Ghoddusi, Hamed, 2017. "Price risks for biofuel producers in a deregulated market," Renewable Energy, Elsevier, vol. 114(PB), pages 394-407.
    18. Song, Xiaoling & Wang, Yudong & Zhang, Zhe & Shen, Charles & Peña-Mora, Feniosky, 2021. "Economic-environmental equilibrium-based bi-level dispatch strategy towards integrated electricity and natural gas systems," Applied Energy, Elsevier, vol. 281(C).
    19. A. Gürhan Kök & Kevin Shang & Şafak Yücel, 2018. "Impact of Electricity Pricing Policies on Renewable Energy Investments and Carbon Emissions," Management Science, INFORMS, vol. 64(1), pages 131-148, January.
    20. Zhang, Huiming & Zheng, Yu & Ozturk, U. Aytun & Li, Shanjun, 2016. "The impact of subsidies on overcapacity: A comparison of wind and solar energy companies in China," Energy, Elsevier, vol. 94(C), pages 821-827.
    21. Wu, Junjian & Wang, Haiyan & Shang, Jennifer, 2019. "Multi-sourcing and information sharing under competition and supply uncertainty," European Journal of Operational Research, Elsevier, vol. 278(2), pages 658-671.
    22. Wang, Yuxin & Fu, Gui & Lyu, Qian & Wu, Yali & Jia, Qinsong & Yang, Xiaoyu & Li, Xiao, 2022. "Reform and development of coal mine safety in China: An analysis from government supervision, technical equipment, and miner education," Resources Policy, Elsevier, vol. 77(C).
    23. Newell, Richard G. & Pizer, William A. & Raimi, Daniel, 2019. "U.S. federal government subsidies for clean energy: Design choices and implications," Energy Economics, Elsevier, vol. 80(C), pages 831-841.
    24. Hu, Junfei & Chen, Huanyue & Zhou, Peng & Guo, Peng, 2022. "Optimal subsidy level for waste-to-energy investment considering flexibility and uncertainty," Energy Economics, Elsevier, vol. 108(C).
    25. Lv, Chengwei & Xu, Jiuping & Xie, Heping & Zeng, Ziqiang & Wu, Yimin, 2016. "Equilibrium strategy based coal blending method for combined carbon and PM10 emissions reductions," Applied Energy, Elsevier, vol. 183(C), pages 1035-1052.
    26. Yu, Ming-Miin & Chen, Li-Hsueh & Hsiao, Bo, 2018. "A performance-based subsidy allocation of ferry transportation: A data envelopment approach," Transport Policy, Elsevier, vol. 68(C), pages 13-19.
    27. Avittathur, Balram & Shah, Janat & Gupta, Omprakash K., 2005. "Distribution centre location modelling for differential sales tax structure," European Journal of Operational Research, Elsevier, vol. 162(1), pages 191-205, April.
    28. Bai, Yang & Meng, Jie & Meng, Fanyi & Fang, Guochang, 2020. "Stochastic analysis of a shale gas investment strategy for coping with production uncertainties," Energy Policy, Elsevier, vol. 144(C).
    29. Mayr, Dieter & Schmidt, Johannes & Schmid, Erwin, 2014. "The potentials of a reverse auction in allocating subsidies for cost-effective roof-top photovoltaic system deployment," Energy Policy, Elsevier, vol. 69(C), pages 555-565.
    30. Nie, Pu-Yan & Wang, Chan & Yang, Yon-Cong, 2017. "Comparison of energy efficiency subsidies under market power," Energy Policy, Elsevier, vol. 110(C), pages 144-149.
    31. Liu, Chang & Lin, Boqiang, 2018. "Analysis of the changes in the scale of natural gas subsidy in China and its decomposition factors," Energy Economics, Elsevier, vol. 70(C), pages 37-44.
    32. Xu, Jiuping & Yang, Xin & Tao, Zhimiao, 2015. "A tripartite equilibrium for carbon emission allowance allocation in the power-supply industry," Energy Policy, Elsevier, vol. 82(C), pages 62-80.
    33. Zaixing Huang & Christine Sednek & Michael A. Urynowicz & Hongguang Guo & Qiurong Wang & Paul Fallgren & Song Jin & Yan Jin & Uche Igwe & Shengpin Li, 2017. "Low carbon renewable natural gas production from coalbeds and implications for carbon capture and storage," Nature Communications, Nature, vol. 8(1), pages 1-11, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ji, Bingnan & Pan, Hongyu & Pang, Mingkun & Pan, Mingyue & Zhang, Hang & Zhang, Tianjun, 2023. "Molecular simulation of CH4 adsorption characteristics in bituminous coal after different functional group fractures," Energy, Elsevier, vol. 282(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fan, Lurong & Wang, Binyu & Song, Xiaoling, 2023. "An authority-enterprise equilibrium differentiated subsidy mechanism for promoting coalbed methane extraction in multiple coal seams," Energy, Elsevier, vol. 263(PA).
    2. Fan, Lurong & Xu, Jiuping, 2020. "Authority–enterprise equilibrium based mixed subsidy mechanism for carbon reduction and energy utilization in the coalbed methane industry," Energy Policy, Elsevier, vol. 147(C).
    3. Hortay, Olivér & Rozner, Bence Péter, 2019. "Allocating renewable subsidies," Economic Analysis and Policy, Elsevier, vol. 64(C), pages 236-247.
    4. Yan, Chen & Ji, Yaxing & Chen, Rui, 2023. "Research on the mechanism of selective industrial policies on enterprises' innovation performance ——Evidence from China's photovoltaic industry," Renewable Energy, Elsevier, vol. 215(C).
    5. Lin, Boqiang & Li, Zhensheng, 2020. "Analysis of the natural gas demand and subsidy in China: A multi-sectoral perspective," Energy, Elsevier, vol. 202(C).
    6. Lin, Boqiang & He, Jiaxin, 2017. "Is biomass power a good choice for governments in China?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 1218-1230.
    7. Xu, Shang & Zhang, Jun, 2023. "The welfare impacts of removing coal subsidies in rural China," Energy Economics, Elsevier, vol. 118(C).
    8. Qing Feng & Qian Huang & Qingyan Zheng & Li Lu, 2018. "New Carbon Emissions Allowance Allocation Method Based on Equilibrium Strategy for Carbon Emission Mitigation in the Coal-Fired Power Industry," Sustainability, MDPI, vol. 10(8), pages 1-18, August.
    9. Hamawand, Ihsan & Yusaf, Talal & Hamawand, Sara G., 2013. "Coal seam gas and associated water: A review paper," Renewable and Sustainable Energy Reviews, Elsevier, vol. 22(C), pages 550-560.
    10. Wu, Wei & Hu, Yingying & Wu, Qinwen, 2023. "Subsidies and tax incentives - Does it make a difference on TFP? Evidences from China's photovoltaic and wind listed companies," Renewable Energy, Elsevier, vol. 208(C), pages 645-656.
    11. Shi, Yi & Xu, Jiuping, 2023. "A multi-objective approach to kitchen waste and excess sludge co-digestion for biomethane production with anaerobic digestion," Energy, Elsevier, vol. 262(PA).
    12. Jafari, Hamed & Safarzadeh, Soroush & Azad-Farsani, Ehsan, 2022. "Effects of governmental policies on energy-efficiency improvement of hydrogen fuel cell cars: A game-theoretic approach," Energy, Elsevier, vol. 254(PC).
    13. Yu, Shiwei & Lu, Tingwei & Hu, Xing & Liu, Lancui & Wei, Yi-Ming, 2021. "Determinants of overcapacity in China’s renewable energy industry: Evidence from wind, photovoltaic, and biomass energy enterprises," Energy Economics, Elsevier, vol. 97(C).
    14. Arzaghi, Mohammad & Squalli, Jay, 2023. "The environmental impact of fossil fuel subsidy policies," Energy Economics, Elsevier, vol. 126(C).
    15. Daneshzand, Farzaneh & Asali, Mehdi & Al-Sobhi, Saad A. & Diabat, Ali & Elkamel, Ali, 2022. "A simulation-based optimization scheme for phase-out of natural gas subsidies considering welfare and economic measures," Energy, Elsevier, vol. 259(C).
    16. Zhang, Baoxin & Deng, Ze & Fu, Xuehai & Yu, Kun & Zeng, Fanhua (Bill), 2023. "An experimental study on the effects of acidization on coal permeability: Implications for the enhancement of coalbed methane production," Energy, Elsevier, vol. 280(C).
    17. Shouqing Lu & Yuanping Cheng & Jinmin Ma & Yuebing Zhang, 2014. "Application of in-seam directional drilling technology for gas drainage with benefits to gas outburst control and greenhouse gas reductions in Daning coal mine, China," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 73(3), pages 1419-1437, September.
    18. Zi‐rui Chen & Pu‐yan Nie, 2020. "Implications of a cap‐and‐trade system for emission reductions under an asymmetric duopoly," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3135-3145, December.
    19. Yang, Ruiyue & Hong, Chunyang & Huang, Zhongwei & Song, Xianzhi & Zhang, Shikun & Wen, Haitao, 2019. "Coal breakage using abrasive liquid nitrogen jet and its implications for coalbed methane recovery," Applied Energy, Elsevier, vol. 253(C), pages 1-1.
    20. Liu, Jianye & Li, Zuxin & Duan, Xuqiang & Luo, Dongkun & Zhao, Xu & Liu, Ruolei, 2021. "Subsidy analysis and development trend forecast of China's unconventional natural gas under the new unconventional gas subsidy policy," Energy Policy, Elsevier, vol. 153(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:277:y:2023:i:c:s036054422300974x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.