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Steelmaking technology and energy prices: The case of Germany

Author

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  • Britto, Anthony
  • Kraft, Emil
  • Dehler-Holland, Joris

Abstract

We examine the relationship between the choice of steelmaking technology and energy prices in Germany using data beginning 1970. The analysis indicates that technology choice began to cointegrate with comparative energy prices in the early 90s. The short and long-run effects of energy prices are captured in a partial adjustment model; the ratio of electricity to coal prices is seen to exert sizeable influence on the short and long-term deployment of the electric arc furnace for secondary steelmaking. If current trends in energy prices continue, the share of secondary steelmaking in total steel production is expected to increase rather slowly.

Suggested Citation

  • 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).
    • Handle: RePEc:zbw:kitiip:68
    DOI: 10.5445/IR/1000153214
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    References listed on IDEAS

    as
    1. 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.
    2. Reppelin-Hill, Valerie, 1999. "Trade and Environment: An Empirical Analysis of the Technology Effect in the Steel Industry," Journal of Environmental Economics and Management, Elsevier, vol. 38(3), pages 283-301, November.
    3. Papież, Monika & Śmiech, Sławomir, 2015. "Dynamic steam coal market integration: Evidence from rolling cointegration analysis," Energy Economics, Elsevier, vol. 51(C), pages 510-520.
    4. Suzanna De Boef & Luke Keele, 2008. "Taking Time Seriously," American Journal of Political Science, John Wiley & Sons, vol. 52(1), pages 184-200, January.
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    More about this item

    Keywords

    technology adoption and diffusion; steelmaking; electric arc furnace; comparative energy prices; ARDL model;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q49 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Other
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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