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Long Term Trends in Steel Consumption

  • Roland Döhrn
  • Karoline Krätschell


Since the iron and steel sector contributes considerably to industrial CO2 emissions it is important to identify the underlying factors driving steel demand. Using a panel dataset this paper examines the interrelation of steel demand with GDP and its composition, in particular the investment share since investment goods can be expected to be particularly steel intensive. Our analysis confirms that there seems to be an increase of steel demand in an initial stage of economic development and a decline after economies have reached a certain level of per capita income. Moreover, we find some evidence that carbon leakage do not seem to play a role in the steel sector.

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Paper provided by Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen in its series Ruhr Economic Papers with number 0415.

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Length: 27 pages
Date of creation: May 2013
Date of revision:
Handle: RePEc:rwi:repape:0415
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  1. Gunnar A. Eskeland & Ann E. Harrison, 2002. "Moving to Greener Pastures? Multinationals and the Pollution Haven Hypothesis," NBER Working Papers 8888, National Bureau of Economic Research, Inc.
  2. Edward Manderson & Richard Kneller, 2012. "Environmental Regulations, Outward FDI and Heterogeneous Firms: Are Countries Used as Pollution Havens?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 51(3), pages 317-352, March.
  3. Crompton, Paul, 1999. "Forecasting steel consumption in South-East Asia," Resources Policy, Elsevier, vol. 25(2), pages 111-123, June.
  4. Crompton, Paul, 2000. "Future trends in Japanese steel consumption," Resources Policy, Elsevier, vol. 26(2), pages 103-114, June.
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