Scenarios of sustainable development of metallurgical industry: simulation modeling

Ural State University of Economics, 8 Marta Str., 62, 620144 Ekaterinburg, Russia

^* Corresponding author: kev@usue.ru

Abstract

Due to a complicated epidemiological situation, current economic situation in Russia and the world gives a push to new researches in the field of ensure sustainable development in all branches of industry. Methods and tools available today cannot fully provide this, so modern economics needs to develop fundamentally new approaches to the study of industries. Within the framework of this research it is proposed to use simulation modeling to predict scenarios of sustainable development of certain industries, in particular metallurgy, mining of metal ores and production of finished metal products. The research is based on systemic-synergistic approach based on the theory of industrial organization, economic growth and development, system dynamics and mathematical economics. The simulation model of metallurgy and related industries development, which is based on a system dynamic flow – streaming stratification, was designed and developed as a result of this research. Ideas of three-sector model, adapted to the sectoral aspects of the functioning of the economic system, are used in the simulation model. The development allows to simulate various scenarios of the development of the industries under study in order to determine the trajectory of their sustainable development. As a demonstration, three scenarios of the development of industries are presented, taking into account changes in the most important component of the economic system - labor force.