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A System Dynamics Model of Mining Industry Investment Decisions within the Context of Environmental Policy

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  • Bernadette O'Regan
  • Richard Moles

Abstract

This paper describes a detailed computer model developed using the Powersim simulation program in the system dynamics tradition. The model comprises over 180 interrelated variables, providing a means of examining the effects of varied environmental, fiscal and corporate policies on the flow of investment funds and mineral resources between a number of simulated mining firms and competing countries. An outline of the system dynamics method is presented, followed by a high-level overview of the model structure. Examples of the application of the model are then discussed.

Suggested Citation

  • Bernadette O'Regan & Richard Moles, 2001. "A System Dynamics Model of Mining Industry Investment Decisions within the Context of Environmental Policy," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 44(2), pages 245-262.
  • Handle: RePEc:taf:jenpmg:v:44:y:2001:i:2:p:245-262
    DOI: 10.1080/09640560120033731
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    Cited by:

    1. Desheng Dash Wu & David L. Olson, 2014. "A System Dynamics Modelling of Contagion Effects in Accounts Risk Management," Systems Research and Behavioral Science, Wiley Blackwell, vol. 31(4), pages 502-511, July.
    2. Hazra, Tanmoy & Samanta, Biswajit & Dey, Kaushik, 2019. "Real option valuation of an Indian iron ore deposit through system dynamics model," Resources Policy, Elsevier, vol. 60(C), pages 288-299.

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