Using system dynamics to model the interaction between environmental and economic factors in the mining industry

Abstract This paper describes a graphical and mathematical representation of the interactions between environmental and economic policies governing the long-term behaviour of a complex system – namely, the interrelationships governing the flow of mineral investment funds. The paper is underpinned by a computer simulation model developed in the system dynamics tradition. Through quantitative analysis of existing data, the model exposes, within the context of sustainable development, the underlying assumptions used as a basis for corporate decisions. Through the compression of time, the model provides a means of taking these assumptions to their logical conclusions. Exposing assumptions in this way leaves less room for misinterpretation and provides a solid basis for enhancing the understanding of system structure. It is by better understanding system structure that more effective sustainable development policies may be designed and implemented.