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Estimates of the potential for energy conservation in the Chinese steel industry

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  • Lin, Boqiang
  • Wu, Ya
  • Zhang, Li

Abstract

The study evaluates the energy saving potential of the Chinese steel industry by studying its potential future energy efficiency gap. In order to predict the future energy efficiency gap, a multivariate regression model combined with risk analysis is developed to estimate future energy intensity of China's steel industry. It is found that R&D intensity, energy saving investment, labor productivity and industry concentration are all important variables that affect energy intensity. We assess the possible measures as to how China's steel industry can narrow the energy efficiency gap with Japan by means of scenario analysis. Using Japan's current energy efficiency level as baseline, the energy saving potential of China's steel industry is more than 200 million ton coal equivalent in 2008, and it would fall to zero in 2020. However, if greater efforts were made to conserve energy, it would be possible to narrow down the energy efficiency gap between China and Japan by around 2015. Finally, using the results of the scenario analysis, future policy priorities for energy conservation in China's steel industry are assessed in this paper.

Suggested Citation

  • Lin, Boqiang & Wu, Ya & Zhang, Li, 2011. "Estimates of the potential for energy conservation in the Chinese steel industry," Energy Policy, Elsevier, vol. 39(6), pages 3680-3689, June.
  • Handle: RePEc:eee:enepol:v:39:y:2011:i:6:p:3680-3689
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    Cited by:

    1. Yang, Tian-Jian & Zhang, Yue-Jun & Huang, Jin & Peng, Ruo-Hong, 2013. "Estimating the energy saving potential of telecom operators in China," Energy Policy, Elsevier, pages 448-459.
    2. Lin, Boqiang & Wang, Xiaolei, 2014. "Exploring energy efficiency in China׳s iron and steel industry: A stochastic frontier approach," Energy Policy, Elsevier, vol. 72(C), pages 87-96.
    3. Lin, Boqiang & Wang, Ailun, 2015. "Estimating energy conservation potential in China's commercial sector," Energy, Elsevier, vol. 82(C), pages 147-156.
    4. Lin, Boqiang & Xie, Chunping, 2013. "Estimation on oil demand and oil saving potential of China's road transport sector," Energy Policy, Elsevier, vol. 61(C), pages 472-482.
    5. Lin, Boqiang & Long, Houyin, 2016. "Emissions reduction in China׳s chemical industry – Based on LMDI," Renewable and Sustainable Energy Reviews, Elsevier, vol. 53(C), pages 1348-1355.
    6. repec:gam:jsusta:v:9:y:2017:i:4:p:668-:d:96529 is not listed on IDEAS
    7. He, Feng & Zhang, Qingzhi & Lei, Jiasu & Fu, Weihui & Xu, Xiaoning, 2013. "Energy efficiency and productivity change of China’s iron and steel industry: Accounting for undesirable outputs," Energy Policy, Elsevier, vol. 54(C), pages 204-213.
    8. Yu, Shiwei & Agbemabiese, Lawrence & Zhang, Junjie, 2016. "Estimating the carbon abatement potential of economic sectors in China," Applied Energy, Elsevier, pages 107-118.
    9. Lin, Boqiang & Wang, Xiaolei, 2014. "Promoting energy conservation in China's iron & steel sector," Energy, Elsevier, vol. 73(C), pages 465-474.
    10. Hu, Rui & Zhang, Qun, 2015. "Study of a low-carbon production strategy in the metallurgical industry in China," Energy, Elsevier, vol. 90(P2), pages 1456-1467.
    11. repec:gam:jeners:v:11:y:2018:i:1:p:241-:d:127853 is not listed on IDEAS
    12. Xu, Bin & Lin, Boqiang, 2016. "Assessing CO2 emissions in China’s iron and steel industry: A dynamic vector autoregression model," Applied Energy, Elsevier, pages 375-386.
    13. Lin, Boqiang & Moubarak, Mohamed, 2013. "Decomposition analysis: Change of carbon dioxide emissions in the Chinese textile industry," Renewable and Sustainable Energy Reviews, Elsevier, vol. 26(C), pages 389-396.
    14. Li, Ke & Lin, Boqiang, 2015. "The efficiency improvement potential for coal, oil and electricity in China's manufacturing sectors," Energy, Elsevier, vol. 86(C), pages 403-413.
    15. Lin, Boqiang & Long, Houyin, 2014. "How to promote energy conservation in China’s chemical industry," Energy Policy, Elsevier, vol. 73(C), pages 93-102.
    16. Meng, F.Y. & Zhou, D.Q. & Zhou, P. & Bai, Y., 2014. "Sectoral comparison of electricity-saving potentials in China: An analysis based on provincial input–output tables," Energy, Elsevier, vol. 72(C), pages 772-782.
    17. Lin, Boqiang & Ouyang, Xiaoling, 2014. "Electricity demand and conservation potential in the Chinese nonmetallic mineral products industry," Energy Policy, Elsevier, vol. 68(C), pages 243-253.
    18. Lin, Boqiang & Zhang, Guoliang, 2013. "Estimates of electricity saving potential in Chinese nonferrous metals industry," Energy Policy, Elsevier, vol. 60(C), pages 558-568.
    19. Nihan Karali & Tengfang Xu & Jayant Sathaye, 2016. "Developing long-term strategies to reduce energy use and CO2 emissions—analysis of three mitigation scenarios for iron and steel production in China," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 21(5), pages 699-719, June.
    20. Gang Du & Chuanwang Sun, 2015. "Determinants of Electricity Demand in Nonmetallic Mineral Products Industry: Evidence from a Comparative Study of Japan and China," Sustainability, MDPI, Open Access Journal, vol. 7(6), pages 1-25, June.
    21. Lin, Boqiang & Long, Houyin, 2014. "Promoting carbon emissions reduction in China's chemical process industry," Energy, Elsevier, vol. 77(C), pages 822-830.
    22. Zhang, Qi & Zhao, Xiaoyu & Lu, Hongyou & Ni, Tuanjie & Li, Yu, 2017. "Waste energy recovery and energy efficiency improvement in China’s iron and steel industry," Applied Energy, Elsevier, pages 502-520.
    23. Lin, Boqiang & Moubarak, Mohamed & Ouyang, Xiaoling, 2014. "Carbon dioxide emissions and growth of the manufacturing sector: Evidence for China," Energy, Elsevier, vol. 76(C), pages 830-837.
    24. Zhou, Kaile & Yang, Shanlin, 2016. "Emission reduction of China׳s steel industry: Progress and challenges," Renewable and Sustainable Energy Reviews, Elsevier, vol. 61(C), pages 319-327.

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