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The energy efficiency of the steel industry of China

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  • Ross, Marc
  • Feng, Liu

Abstract

The Chinese iron and steel industry of 1987 is described in terms of energy consumption and production statistics and compared with the U.S. industry to clarify the major differences. The Chinese industry includes many plants which are extremely small by U.S. standards and use antiquated technology, but this segment is responsible for only 25% of steel production. The more modern key plants of the Chinese industry have an adjusted energy intensity just 20% higher than the U.S. average. The adjustment includes the effect of very large production of cast-iron products in China. Two other major characteristics of the Chinese industry which distinguish it from that of the U.S. are: (1) much lower use of scrap from sources external to the steel industry and (2) much less ambitious shaping and treating of final products. The use of scrap reduces overall energy intensity. The manufacture of more complex and higher quality products increases overall energy intensity. If the Chinese industry could take on the characteristics of the U.S. industry in these two respects, other things being equal, the overall energy intensity would remain about 20% higher. The reasons for this residual difference and the potential of new technology for the Chinese industry are briefly discussed.

Suggested Citation

  • Ross, Marc & Feng, Liu, 1991. "The energy efficiency of the steel industry of China," Energy, Elsevier, vol. 16(5), pages 833-848.
    • Handle: RePEc:eee:energy:v:16:y:1991:i:5:p:833-848
    DOI: 10.1016/0360-5442(91)90071-S
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    Citations

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    Cited by:

    1. Worrell, Ernst & Price, Lynn & Martin, Nathan & Farla, Jacco & Schaeffer, Roberto, 1997. "Energy intensity in the iron and steel industry: a comparison of physical and economic indicators," Energy Policy, Elsevier, vol. 25(7-9), pages 727-744.
    2. Price, L & Sinton, J & Worrell, E & Phylipsen, D & Xiulian, H & Ji, L, 2002. "Energy use and carbon dioxide emissions from steel production in China," Energy, Elsevier, vol. 27(5), pages 429-446.
    3. Ramirez, C.A. & Blok, K. & Neelis, M. & Patel, M., 2006. "Adding apples and oranges: The monitoring of energy efficiency in the Dutch food industry," Energy Policy, Elsevier, vol. 34(14), pages 1720-1735, September.
    4. Boyle, Stewart, 1996. "DSM progress and lessons in the global context," Energy Policy, Elsevier, vol. 24(4), pages 345-359, April.
    5. Filippini, Massimo & Geissmann, Thomas & Karplus, Valerie J. & Zhang, Da, 2020. "The productivity impacts of energy efficiency programs in developing countries: Evidence from iron and steel firms in China," China Economic Review, Elsevier, vol. 59(C).
    6. Fukuyama, Hirofumi & Song, Yao-yao & Ren, Xian-tong & Yang, Guo-liang, 2022. "Using a novel DEA-based model to investigate capacity utilization of Chinese firms," Omega, Elsevier, vol. 106(C).
    7. 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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