Research on Government Dynamic Strategies for Mining Technology Investment of Mineral Resource Enterprises

As a large mineral resource consuming country, it is of great strategic significance to effectively improve the efficiency of China's mineral resource exploitation and reduce the waste of exploitation to achieve sustainable development. The purpose of this paper is to examine how governments can incentivize enterprises to invest in mining technology to improve mineral resource recovery rates under both process subsidy policy and outcome incentive policy, and to comparatively analyze which policy is more effective in increasing mineral resource enterprises' investment in mining technology. We construct a differential game model of the government's incentive policy for mining technology investment in mineral resource enterprise. The results show the following. (1) For mineral resources with low marginal returns, both process subsidy and outcome incentive policies can encourage the enterprise to increase investment in mining technology. (2) For scarce strategic resources, the process subsidy policy has a better incentive effect when the marginal returns of mineral resources are high, and the outcome incentive policy has a better incentive effect when the marginal returns are low. (3) Mineral resource enterprise has higher recovery rates under the process subsidy policy.