Game theory approach in decisional process of energy management for industrial sector

Intensive energy consuming industrial sectors are the most important actors on global climate change which natural habitat and the environment faced. In this study, by the scope of energy management, decision-making process of the industry and the environment are evaluated in a game theoretic approach. Industry and environment are considered as two players which have conflicting objectives and try to find optimal strategies in governing energy policy. According to concept of study, while industry tries to maintain the sustainability of production with the strategies of fossil fuel, renewable energies, energy recovery and nuclear energy usage, environment exhibits reactive approach to ensure its sustainability. In the flow of study, players' strategies are analyzed by using Multi-Criteria Decision Making (MCDM) methods and by calculating performance efficiency values of strategies, game payoff matrix is obtained. Finally, optimal strategies are found for both industry and environment in orienting their energy policy and results are evaluated. According to results of the payoff matrix, the equilibrium point is the cell (2,1) with the values of 0.5324 and 0.5619. This implies that the environment develops protective reflexes for sustainable nature in case of using renewable energy in industry. (C) 2013 Elsevier Ltd. All rights reserved.