IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v15y2022i21p7909-d952683.html
   My bibliography  Save this article

An Econometric Model of the Operation of the Steel Industry in POLAND in the Context of Process Heat and Energy Consumption

Author

Listed:
  • Bożena Gajdzik

    (Department of Industrial Informatics, Silesian University of Technology, 40-019 Katowice, Poland)

  • Radosław Wolniak

    (Department of Organization and Management, Silesian University of Technology, 41-800 Zabrze, Poland)

  • Wieslaw Wes Grebski

    (Penn State Hazleton, Pennsylvania State University, 76 University Drive, Hazleton, PA 18202-8025, USA)

Abstract

The analyses presented in the publication allowed, on the basis of the data collected, development of an econometric model for the Polish steel industry from the point of view of the relationship between heat and energy management in the steel production process. The developed model is the main novelty of the paper. The main objective of the study was to develop an econometric model of Poland’s heat and energy economy. The following research questions were raised: Is there an econometric model describing heat consumption (intensity) in the steel industry in Poland in relation to steel production and the energy economy? What are the relations between heat intensity and energy prices and steel production in Poland? How might the current energy crisis affect steel production? In the analysis we used data of energy and heat management in the Polish steel industry. An econometric model was developed of the dependence of heat consumption (Yt) on electricity prices (X1t) and steel production (X2t) in Poland. The authors took advantage of open access to data. Annual volumes of heat consumption in steel production processes in Poland were analysed as a function of the annual volume of steel production and the prices of electricity, which are consumed in technological processes in steel mills. We analyzed data for years 2004–2020. The analyses carried out showed that there is an inversely proportional relationship between electricity prices and the intensity of heat consumption by the steel industry. Research shows that rising energy prices lead to lower steel production. This is a dangerous phenomenon for the steel industry in the context of the current energy crisis caused by the pandemic and war in Ukraine. We think that the significance of our results is connected with the fact that the developed model is a useful analytical tool, as it not only allows the analysis of historical data, but can also be used to predict how steel industry parameters will change in the future under the influence of changes in external factors, such as energy prices. This gives a wide range of analytical possibilities for the use of the model.

Suggested Citation

  • Bożena Gajdzik & Radosław Wolniak & Wieslaw Wes Grebski, 2022. "An Econometric Model of the Operation of the Steel Industry in POLAND in the Context of Process Heat and Energy Consumption," Energies, MDPI, vol. 15(21), pages 1-26, October.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:21:p:7909-:d:952683
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/15/21/7909/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/15/21/7909/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Elsayed, Ahmed H. & Naifar, Nader & Nasreen, Samia & Tiwari, Aviral Kumar, 2022. "Dependence structure and dynamic connectedness between green bonds and financial markets: Fresh insights from time-frequency analysis before and during COVID-19 pandemic," Energy Economics, Elsevier, vol. 107(C).
    2. Madaleno, Mara & Dogan, Eyup & Taskin, Dilvin, 2022. "A step forward on sustainability: The nexus of environmental responsibility, green technology, clean energy and green finance," Energy Economics, Elsevier, vol. 109(C).
    3. Tariq Banuri & Hans Opschoor, 2007. "Climate Change and Sustainable Development," Working Papers 56, United Nations, Department of Economics and Social Affairs.
    4. Arturas Kaklauskas & Natalija Lepkova & Saulius Raslanas & Ingrida Vetloviene & Virgis Milevicius & Jevgenij Sepliakov, 2021. "COVID-19 and Green Housing: A Review of Relevant Literature," Energies, MDPI, vol. 14(8), pages 1-38, April.
    5. Andrzej Pacana & Dominika Siwiec & Lucia Bednárová, 2020. "Method of Choice: A Fluorescent Penetrant Taking into Account Sustainability Criteria," Sustainability, MDPI, vol. 12(14), pages 1-21, July.
    6. Pedro R. R. Rochedo & Panagiotis Fragkos & Rafael Garaffa & Lilia Caiado Couto & Luiz Bernardo Baptista & Bruno S. L. Cunha & Roberto Schaeffer & Alexandre Szklo, 2021. "Is Green Recovery Enough? Analysing the Impacts of Post-COVID-19 Economic Packages," Energies, MDPI, vol. 14(17), pages 1-19, September.
    7. Lixin Tang & Ying Meng & Zhi-Long Chen & Jiyin Liu, 2016. "Coil Batching to Improve Productivity and Energy Utilization in Steel Production," Manufacturing & Service Operations Management, INFORMS, vol. 18(2), pages 262-279, May.
    8. Adam Duda & Gregorio Fidalgo Valverde, 2021. "The Economics of Coking Coal Mining: A Fossil Fuel Still Needed for Steel Production," Energies, MDPI, vol. 14(22), pages 1-12, November.
    9. Bozena Gajdzik, 2022. "How Steel Mills Transform into Smart Mills: Digital Changes and Development Determinants in the Polish Steel Industry," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 27-42.
    10. Anukriti Sharma & Hiranmoy Roy & Narendra Nath Dalei, 2019. "Estimation Of Energy Intensity In Indian Iron And Steel Sector: A Panel Data Analysis," Statistics in Transition New Series, Polish Statistical Association, vol. 20(2), pages 107-121, June.
    11. Salta, Myrsine & Polatidis, Heracles & Haralambopoulos, Dias, 2009. "Energy use in the Greek manufacturing sector: A methodological framework based on physical indicators with aggregation and decomposition analysis," Energy, Elsevier, vol. 34(1), pages 90-111.
    12. Peter Baláž & Juraj Bayer, 2019. "Energy Prices and their Impact on the Competitiveness of the EU Steel Industry," Prague Economic Papers, Prague University of Economics and Business, vol. 2019(5), pages 547-566.
    13. Noreen Beg & Jan Corfee Morlot & Ogunlade Davidson & Yaw Afrane-Okesse & Lwazikazi Tyani & Fatma Denton & Youba Sokona & Jean Philippe Thomas & Emilio L�bre La Rovere & Jyoti K. Parikh & Kirit Parikh , 2002. "Linkages between climate change and sustainable development," Climate Policy, Taylor & Francis Journals, vol. 2(2-3), pages 129-144, September.
    14. Radosław Wolniak & Sebastian Saniuk & Sandra Grabowska & Bożena Gajdzik, 2020. "Identification of Energy Efficiency Trends in the Context of the Development of Industry 4.0 Using the Polish Steel Sector as an Example," Energies, MDPI, vol. 13(11), pages 1-16, June.
    15. Rongxin Wu & Boqiang Lin, 2022. "Does Energy Efficiency Realize Energy Conservation in the Iron and Steel Industry? A Perspective of Energy Rebound Effect," IJERPH, MDPI, vol. 19(18), pages 1-20, September.
    16. Xu, Tengfang & Flapper, Joris, 2011. "Reduce energy use and greenhouse gas emissions from global dairy processing facilities," Energy Policy, Elsevier, vol. 39(1), pages 234-247, January.
    17. Bożena Gajdzik & Radosław Wolniak, 2021. "Digitalisation and Innovation in the Steel Industry in Poland—Selected Tools of ICT in an Analysis of Statistical Data and a Case Study," Energies, MDPI, vol. 14(11), pages 1-25, May.
    18. 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).
    19. Bożena Gajdzik & Radosław Wolniak, 2021. "Transitioning of Steel Producers to the Steelworks 4.0—Literature Review with Case Studies," Energies, MDPI, vol. 14(14), pages 1-22, July.
    20. Vaněk, Michal & Bora, Petr & Maruszewska, Ewa Wanda & Kašparková, Alena, 2017. "Benchmarking of mining companies extracting hard coal in the Upper Silesian Coal Basin," Resources Policy, Elsevier, vol. 53(C), pages 378-383.
    21. Bożena Gajdzik & Sandra Grabowska & Sebastian Saniuk & Tadeusz Wieczorek, 2020. "Sustainable Development and Industry 4.0: A Bibliometric Analysis Identifying Key Scientific Problems of the Sustainable Industry 4.0," Energies, MDPI, vol. 13(16), pages 1-27, August.
    22. Dominika Siwiec & Andrzej Pacana, 2021. "Model of Choice Photovoltaic Panels Considering Customers’ Expectations," Energies, MDPI, vol. 14(18), pages 1-32, September.
    23. Bożena Gajdzik & Radoslaw Wolniak, 2021. "Influence of the COVID-19 Crisis on Steel Production in Poland Compared to the Financial Crisis of 2009 and to Boom Periods in the Market," Resources, MDPI, vol. 10(1), pages 1-17, January.
    24. Sheinbaum, Claudia & Ozawa, Leticia & Castillo, Daniel, 2010. "Using logarithmic mean Divisia index to analyze changes in energy use and carbon dioxide emissions in Mexico's iron and steel industry," Energy Economics, Elsevier, vol. 32(6), pages 1337-1344, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bożena Gajdzik & Radosław Wolniak & Wieslaw Wes Grebski, 2023. "Electricity and Heat Demand in Steel Industry Technological Processes in Industry 4.0 Conditions," Energies, MDPI, vol. 16(2), pages 1-29, January.
    2. Bożena Gajdzik & Radosław Wolniak & Wies Grebski, 2023. "Process of Transformation to Net Zero Steelmaking: Decarbonisation Scenarios Based on the Analysis of the Polish Steel Industry," Energies, MDPI, vol. 16(8), pages 1-36, April.
    3. Behnam Zakeri & Katsia Paulavets & Leonardo Barreto-Gomez & Luis Gomez Echeverri & Shonali Pachauri & Benigna Boza-Kiss & Caroline Zimm & Joeri Rogelj & Felix Creutzig & Diana Ürge-Vorsatz & David G. , 2022. "Pandemic, War, and Global Energy Transitions," Energies, MDPI, vol. 15(17), pages 1-23, August.
    4. Anna Kwiotkowska & Radosław Wolniak & Bożena Gajdzik & Magdalena Gębczyńska, 2022. "Configurational Paths of Leadership Competency Shortages and 4.0 Leadership Effectiveness: An fs/QCA Study," Sustainability, MDPI, vol. 14(5), pages 1-21, February.
    5. Bożena Gajdzik & Magdalena Jaciow & Radosław Wolniak & Robert Wolny & Wieslaw Wes Grebski, 2023. "Energy Behaviors of Prosumers in Example of Polish Households," Energies, MDPI, vol. 16(7), pages 1-26, March.
    6. Bożena Gajdzik & Włodzimierz Sroka & Jolita Vveinhardt, 2021. "Energy Intensity of Steel Manufactured Utilising EAF Technology as a Function of Investments Made: The Case of the Steel Industry in Poland," Energies, MDPI, vol. 14(16), pages 1-17, August.
    7. Bożena Gajdzik & Radosław Wolniak, 2021. "Transitioning of Steel Producers to the Steelworks 4.0—Literature Review with Case Studies," Energies, MDPI, vol. 14(14), pages 1-22, July.
    8. Bozena Gajdzik, 2022. "How Steel Mills Transform into Smart Mills: Digital Changes and Development Determinants in the Polish Steel Industry," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 27-42.
    9. Bożena Gajdzik & Magdalena Jaciow & Radosław Wolniak & Robert Wolny & Wieslaw Wes Grebski, 2023. "Assessment of Energy and Heat Consumption Trends and Forecasting in the Small Consumer Sector in Poland Based on Historical Data," Resources, MDPI, vol. 12(9), pages 1-33, September.
    10. Lu, Xunfa & Huang, Nan & Mo, Jianlei & Ye, Zhitao, 2023. "Dynamics of the return and volatility connectedness among green finance markets during the COVID-19 pandemic," Energy Economics, Elsevier, vol. 125(C).
    11. Tomasz Jałowiec & Dariusz Grala & Piotr Maśloch & Henryk Wojtaszek & Grzegorz Maśloch & Agnieszka Wójcik-Czerniawska, 2022. "Analysis of the Implementation of Functional Hydrogen Assumptions in Poland and Germany," Energies, MDPI, vol. 15(22), pages 1-25, November.
    12. Tadeusz Olejarz & Dominika Siwiec & Andrzej Pacana, 2022. "Method of Qualitative–Environmental Choice of Devices Converting Green Energy," Energies, MDPI, vol. 15(23), pages 1-22, November.
    13. Robert Ulewicz & Dominika Siwiec & Andrzej Pacana, 2023. "A New Model of Pro-Quality Decision Making in Terms of Products’ Improvement Considering Customer Requirements," Energies, MDPI, vol. 16(11), pages 1-22, May.
    14. Vaninsky, Alexander, 2014. "Factorial decomposition of CO2 emissions: A generalized Divisia index approach," Energy Economics, Elsevier, vol. 45(C), pages 389-400.
    15. Bozena Gajdzik, 2021. "Transformation from Steelworks 3.0 to Steelworks 4.0: Key Technologies of Industry 4.0 and their Usefulness for Polish Steelworks in Direct Research," European Research Studies Journal, European Research Studies Journal, vol. 0(3B), pages 61-71.
    16. Rafał Trzaska & Adam Sulich & Michał Organa & Jerzy Niemczyk & Bartosz Jasiński, 2021. "Digitalization Business Strategies in Energy Sector: Solving Problems with Uncertainty under Industry 4.0 Conditions," Energies, MDPI, vol. 14(23), pages 1-21, November.
    17. Sheinbaum-Pardo, Claudia, 2016. "Decomposition analysis from demand services to material production: The case of CO2 emissions from steel produced for automobiles in Mexico," Applied Energy, Elsevier, vol. 174(C), pages 245-255.
    18. Bozena Gajdzik, 2022. "A Decade of Research on Industry 4.0: A Bibliometric Study of Key Research Areas with Life Cycle Analysis of Publication Dynamics," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 118-134.
    19. Alice Villar & Stefania Paladini & Oliver Buckley, 2023. "Towards Supply Chain 5.0: Redesigning Supply Chains as Resilient, Sustainable, and Human-Centric Systems in a Post-pandemic World," SN Operations Research Forum, Springer, vol. 4(3), pages 1-46, September.
    20. Bożena Gajdzik & Radosław Wolniak, 2021. "Digitalisation and Innovation in the Steel Industry in Poland—Selected Tools of ICT in an Analysis of Statistical Data and a Case Study," Energies, MDPI, vol. 14(11), pages 1-25, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:15:y:2022:i:21:p:7909-:d:952683. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.