Environmental risk evaluation of overseas mining investment based on game theory and an extension matter element model

Abstract

Taking into account the limitations of the single weighting method presently used for the environmental risk evaluation of overseas mining investment, an improved extension evaluation method based on game theory was developed. The method was then applied to real data from the Philippines and used to establish the congener element object and classical domain of the environmental risk of mining investment in the Philippines, based on extension matter element theory. The optimal index weights, based on a balance of subjective and objective results, were obtained from game theory, the analytic hierarchy process, and entropy weight theory. This enabled calculation of the association function values of evaluation indexes in the Philippines and the environmental risk level of overseas mining investment. Finally, given the weighting and association function values, the environmental risk level of mining investment in the Philippines was determined to be level II (higher risk). These results show that the proposed model is effective for evaluating the environmental risk of overseas mining investment.