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What Hinders the Promotion of the Green Mining Mode in China? A Game-Theoretical Analysis of Local Government and Metal Mining Companies

Author

Listed:
  • Yuan Zhao

    (School of Resources and Safety Engineering, Central South University, Changsha 410083, China)

  • Guoyan Zhao

    (School of Resources and Safety Engineering, Central South University, Changsha 410083, China)

  • Jing Zhou

    (School of Resources and Safety Engineering, Central South University, Changsha 410083, China)

  • Dianfei Pei

    (Shandong Gold Group Co., Ltd., Jinan 250101, China)

  • Weizhang Liang

    (School of Resources and Safety Engineering, Central South University, Changsha 410083, China)

  • Ju Qiu

    (School of Resources and Safety Engineering, Central South University, Changsha 410083, China)

Abstract

China is currently trying to reduce the environmental impact of metal mining operations by promoting green mining. However, conflicts of interest between the central government, local governments, and metal mining companies often negatively affect the implementation of related policies. This paper conducted a theoretical analysis of the game mechanism between local governments and metal mining companies to study the factors that influence their strategies. First, we summarize the various game model parameters, determine the strategies which the companies and local government can choose, and establish the game model for the companies and the local government. Second, we list the utility of the company and local government under all game outcomes and analyse their behavioral tendencies. Third, we discuss the impacts of various factors on the choice of their mining mode in detail. The behavioral analysis shows that the local government’s inclination to supervise a mine is negatively related to the supervision cost and positively related to the production scale of this mine; various factors influence the companies in their decision making, with the yield and comprehensive utilization rate of tailings and waste rocks have the greatest impact; the scale of mine production also affects the companies’ willingness to carry out technological innovation. Finally, we offer some suggestions for the promotion of green mining.

Suggested Citation

  • Yuan Zhao & Guoyan Zhao & Jing Zhou & Dianfei Pei & Weizhang Liang & Ju Qiu, 2020. "What Hinders the Promotion of the Green Mining Mode in China? A Game-Theoretical Analysis of Local Government and Metal Mining Companies," Sustainability, MDPI, vol. 12(7), pages 1-17, April.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:7:p:2991-:d:343051
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    References listed on IDEAS

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    1. Weimin Ma & Ranran Zhang & Shiwei Chai, 2019. "What Drives Green Innovation? A Game Theoretic Analysis of Government Subsidy and Cooperation Contract," Sustainability, MDPI, vol. 11(20), pages 1-24, October.
    2. Shang, Delei & Yin, Guangzhi & Li, Xiaoshuang & Li, Yaoji & Jiang, Changbao & Kang, Xiangtao & Liu, Chao & Zhang, Chi, 2015. "Analysis for Green Mine (phosphate) performance of China: An evaluation index system," Resources Policy, Elsevier, vol. 46(P2), pages 71-84.
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    4. Fan, Songmei & Yan, Jingjing & Sha, Jinghua, 2017. "Innovation and economic growth in the mining industry: Evidence from China's listed companies," Resources Policy, Elsevier, vol. 54(C), pages 25-42.
    5. Shengzhong Zhang & Yingmin Yu & Qihong Zhu & Chun Martin Qiu & Aixuan Tian, 2020. "Green Innovation Mode under Carbon Tax and Innovation Subsidy: An Evolutionary Game Analysis for Portfolio Policies," Sustainability, MDPI, vol. 12(4), pages 1-22, February.
    6. Zilong Zhou & Haiquan Wang & Xin Cai & Lu Chen & Yude E & Ruishan Cheng, 2019. "Damage Evolution and Failure Behavior of Post-Mainshock Damaged Rocks under Aftershock Effects," Energies, MDPI, vol. 12(23), pages 1-17, November.
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    Cited by:

    1. Yang Li & Guoyan Zhao & Pan Wu & Ju Qiu, 2022. "An Integrated Gray DEMATEL and ANP Method for Evaluating the Green Mining Performance of Underground Gold Mines," Sustainability, MDPI, vol. 14(11), pages 1-17, June.
    2. Jiskani, Izhar Mithal & Cai, Qingxiang & Zhou, Wei & Ali Shah, Syed Ahsan, 2021. "Green and climate-smart mining: A framework to analyze open-pit mines for cleaner mineral production," Resources Policy, Elsevier, vol. 71(C).

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