Study of System Dynamics on the Equilibrium Development of Ecological and Economic System in Ordos of Inner Mongolia in China

Along with the accelerated process of industrialization and urbanization, China is faced with several severe situations, such as resource constraint, environmental pollution and ecological degradation, which now have aroused the attention of Chinese government. Meanwhile, In the process of industrialization, resource industry has made a great contribution to national economic development, making the resource based cities become the main body of resource supply. After a large-scale of mining exploitation on resource, the resource based cities in China always encountered unsustainable development, the problems of exhaustion of resources, irreversible damage of ecological environment and difficulty of urban renaissance all resulted in the economic stagnation. However, as one of the typical resource based cities in China, Ordos had more than ten years of rapid economic growth oriented by mining industry. Therefore, how to avoid the tragedy of other resource exhausted cities and maintain the fast economic growth with a sustainable development strategy is becoming one of the most important issues. In this paper, based on the analysis of the Ordos city economic, resource and environment subsystem development status, several ecological and economic systems development issues of the city are revealed. Specifically, these include the significant gap between the rich and the poor, irrational industrial structure, sustainable exploitation pressure of resources and environmental pollution. In Ordos city, the economic development depends on exploitation of coal resource. However, the exploitation process results in water shortage and environmental pollution. In order to realize the sustainable development of ecological economic system, a system dynamics model, which coordinates the subsystems of economy, resources and environment, is constructed and resource utilization efficiency, environmental protection and economical development are considered as systemic parameters to forecast the development trend of Ordos city. Then, sustainability of four development modes are compared via setting its control parameters together with a introduced resource-environment loss rate. Finally, we make a conclusion that the Harmonious development-oriented mode makes the GDP growing moderately and the economic losses of resources and environment destruction are under control and the losses decrease gradually, which accords with the requirements for sustainable development, realizing the benign balance between the economic benefit and ecological benefit.