Modelling for policy assessment in the natural gas industry

Abstract

The selection of a method for policy assessment in a particular industry varies according to the characteristics of the issues involved. In the natural gas industry, each component has its own specific features and, when analysed as a single whole, a synthesized modelling approach may turn appropriate. This paper shows that in some instances, the integration of modelling methodologies might be of great value for understanding, evaluating and formulating energy policy. Here we address methodological issues that have been considered for the assessment of policy options in the natural gas industry in Colombia. We focus on both modelling and policy, specifically with respect to industry sustainability, and also on environmental impacts.

Keywords:

• simulation
• modelling
• energy policy
• system dynamics

Acknowledgements

We acknowledge the financial support of The COLCIENCIAS (The Colombian Research Council), UPME (Colombian Ministry of Mines and Energy) and the Universidad Nacional de Colombia. This paper was completed while the co-author spent his sabbatical at Imperial College London. We thank the anonymous referees for their useful comments and constructive criticism.