Study On Environmental Regulation Strategy Of Chinese Shale Gas Development Based On Game Theory

With the rapid economic development, the demand for energy is growing. Many social problems caused by Energy Contention. Today, natural gas gradually occupies a dominant position in energy structure. Shale gas appeared in people’s field of vision as a new type of unconventional natural gas. Vigorously promote the development of shale gas will help ease the energy crisis. It has important practical significance to minimize the environmental impact of shale gas development.The United States is first country that completes the commercialization of shale gas development in the world. In this paper, we have compared the status of the development of shale gas and environmental monitoring strategy between China and the United States. Then we proposed to strengthen the environmental supervision examination, implement the whole process of supervision of shale gas development, promote the research on improving technology of shale gas development and develop suitable environmental regulatory policy for our country.Moreover, in this paper, we have analyzed the behavior of the environmental regulatory and shale gas companies through establishing the game model with different model parameters. We analyzed by taking shale gas development project as an example. We substituted data into the game equilibrium to analyze the changes of different factors which affect the game equilibrium. There are so many measures could change the game equilibrium and promoted to environmental protection, such as reduction of companies’ pollution control costs, improvement of discharge obtained subsidies, improvement of excessive emissions fine, reduction of environmental regulatory costs, improvement of government’s reward and punishment to local environmental regulators, exaltation of public participation.In this paper, we put forward suitable environmental regulatory policy for our country based on the game equilibrium and case analysis. First, hydraulic fracturing method is widely used in shale gas development currently. But the environmental problems caused by hydraulic fracturing method including the extensive use of water resources, surface water pollution, groundwater pollution mainly. So the main regulatory for shale gas development activities should be wastewater monitoring. Not only possible control of major sources of risk, but also can save the cost of environmental regulation, reduces the working pressure of environmental regulation. Secondly, in the development of environmental protection and policies, we should increase the amount of fines appropriately. Thereby to deter illegal enterprises and avoid pointless penalties for violations of the enterprise contributed. This is the easiest and certain effect for environmental regulatory policy. Moreover, environmental regulatory process should insist on disclosure of environmental information. Not only for the composition and for amount of shale gas activities fracturing fluid chemical additives were disclosed, but also the key sewage units and its environmental information. It will help to improve the public evaluation of objectivity. In addition, the improvement of hydraulic fracturing technology research should be encouraged. Studies on environmental friendly additives, increasing reuse of fracturing flowback, fracturing waste disposal methods could help for reducing pollution control costs. While strengthening the regulatory environment and evaluation system and green GDP assessment system, public participation in the establishment of a platform to build public evaluation system help to strength the probability of environmental regulation and reduce regulatory pressures environmental regulators.