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Predicting fracking policy
Date:8/14/2014

tandardized, ad hoc decision making by formally modeling the decision process at hand, and includes the various decision criteria and policy alternatives that may be chosen by the decision maker. Ultimately, MCDA helps aggregate the impact of various unrelated inputs into a ranked list of quantitative results in a transparent process.

The importance of being able to predict future action by governments centers on the significant investment required by hydraulic fracturing companies in order to make drill sites economically viable. As such, these companies are intrinsically required to make an assessment of whether or not to drill within a given country before they have potentially passed a final regulatory assessment of such drilling behavior. If companies find themselves stuck within those countries that limit or ban future fracking activity, the companies would suffer substantial potential losses in projected economic income and various elements of immobile infrastructure at drill sites.

Using fictional data with archetypal countries, we demonstrate how multi-criteria decision analysis can fill the predictive gap for such companies' and organizations' needs. This decision analytic framework can account for various social, economic, environmental, and political factors that influence each nation's decision making, and use them to assess the various types of policy alternatives that could potentially be adopted. Such a tool is versatile and can include a variety of other inputs and information on an individual country basis, and ultimately serves as a formal and transparent method to predict where they fall on fracking's regulatory scale.


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Contact: Alexander K. Brown
alexander.brown@springer.com
212-620-8063
Springer Science+Business Media
Source:Eurekalert

Page: 1 2

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