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Determinants of structural change and innovation in the German steel industry – an empirical investigation

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  • Joachim Schleich

Abstract

In the last 30 years, specific primary energy use in the German steel industry has decreased by about 30%. This decrease can be attributed to both structural changes in the steel industry (from basic oxygen steel to electric arc furnace steel) and to the improved energy efficiency of new technologies within these technological paradigms. In this paper, the relevance of various determinants for the diffusion of electric arc furnace steel (structural change) and for the energy-use of new technologies in the German steel industry sector is assessed econometrically. The empirical findings support the hypotheses that the diffusion of electric arc furnace steel is accelerated by energy and material input prices and dampened by path dependencies. The findings further suggest that the energy performance of new technologies is affected by energy and material input prices, by expenditures for research and development, and – for basic oxygen steel – also by industry concentration.

Suggested Citation

  • Joachim Schleich, 2007. "Determinants of structural change and innovation in the German steel industry – an empirical investigation," International Journal of Public Policy, Inderscience Enterprises Ltd, vol. 2(1/2), pages 109-123.
    • Handle: RePEc:ids:ijpubp:v:2:y:2007:i:1/2:p:109-123
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    Cited by:

    1. Stefan Vögele & Dirk Rübbelke & Kristina Govorukha & Matthias Grajewski, 2020. "Socio-technical scenarios for energy-intensive industries: the future of steel production in Germany," Climatic Change, Springer, vol. 162(4), pages 1763-1778, October.
    2. Francois Cohen and Giulia Valacchi, 2022. "The Heterogeneous Impact of Coal Prices on the Location of Cleaner and Dirtier Steel Plants," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
    3. Britto, Anthony & Kraft, Emil & Dehler-Holland, Joris, 2022. "Steelmaking technology and energy prices: The case of Germany," Working Paper Series in Production and Energy 68, Karlsruhe Institute of Technology (KIT), Institute for Industrial Production (IIP).
    4. Francois Cohen & Giulia Valacchi, 2017. "The Heterogeneous Impact of Coal Prices on the Location of Dirty and Clean Steel Plants," CIES Research Paper series 55-2017, Centre for International Environmental Studies, The Graduate Institute.
    5. Flues, Florens & Rübbelke, Dirk & Vögele, Stefan, 2013. "Energy efficiency and industrial output: The case of the iron and steel industry," ZEW Discussion Papers 13-101, ZEW - Leibniz Centre for European Economic Research.
    6. Vögele, Stefan & Grajewski, Matthias & Govorukha, Kristina & Rübbelke, Dirk, 2020. "Challenges for the European steel industry: Analysis, possible consequences and impacts on sustainable development," Applied Energy, Elsevier, vol. 264(C).
    7. Francois Cohen & Giulia Valacchi, 2017. "Do firms innovate if they can relocate? Evidence from te steel industry," CIES Research Paper series 55-2017, Centre for International Environmental Studies, The Graduate Institute.

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