Abstract: A system dynamic (SD) model was built for studying a mixed-strategy evolutionary game between the governments who manage environment pollution and the enterprise who produce with contamination generates. The stability analysis and SD simulation result show that evolutionary ectuilibrium doesn't exist. A dynamic penalty was suggested in SD model for the equilibrium stabilization and the improvement in environmental pollution. Finally, the stability analysis of the evolutionary game with dynamic penalty proves that Nash equilibrium is the evolutionary equilibrium. SD provides a simulation and experiment platform for the evolutionary game theory's development and application.

Key words: System dynamics,Environmental pollution game,Evolutionary ecauilibrium,Dynamic penalty