scholarly journals Research on the influence of product differentiation and emission reduction policy on CO2 emissions of China’s iron and steel industry

2020 ◽  
Vol 12 (5) ◽  
pp. 717-737
Author(s):  
Ye Duan ◽  
Zenglin Han ◽  
Hailin Mu
Keyword(s):  
Product Differentiation ◽  
Steel Industry ◽  
Emission Reduction ◽  
Carbon Tax ◽  
Economic Benefits ◽  
Economic Indicators ◽  
Iron And Steel Industry ◽  
Content Type ◽  
Iron And Steel ◽  
The Impact

Purpose There are certain differences in the production products of enterprises. What are the impacts of product differentiation on the iron and steel industry? Based on the macro background of CO2 emission reduction, this paper aims to analyze the economic benefits and environmental changes of the iron and steel industry under the dual influence of CO2 emission reduction policy and product differentiation policy. Design/methodology/approach Taking the basic data of iron and steel industry in six regions of China as an example, this paper constructed an extended two-stage dynamic game model to analyze the impact of product differentiation and carbon tax policy on the production, economic indicators and CO2 emission levels for the overall industry and regional enterprises. Findings As the CO2 emission reduction target increased, the unit carbon tax and total tax increased, whereas the macro-environmental losses, social welfare, consumer surplus and outputs decrease. Emission reduction pressures and other economic indicators showed obvious regional differences. Differentiated products promoted various indicators of enterprises and industries; higher degrees of product differentiation resulted in greater promoting effects on economic indicators. Originality/value This paper constructed multiple emission reduction and production backgrounds, and discusses the impact of the comprehensive implementation of these policies, which has been practically absent in previous studies. The results of this study are consistent with the current industrial policy for stable production and environmental protection, and also provides a reference for the formulation of detailed policies in the future.

scholarly journals Research on the applicability and impact of CO2 emission reduction policies on China’s steel industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ye Duan ◽  
Zenglin Han ◽  
Hao Zhang ◽  
Hongye Wang
Keyword(s):  
Steel Industry ◽  
Carbon Dioxide Emissions ◽  
Emission Reduction ◽  
Environmental Changes ◽  
Carbon Tax ◽  
Economic Benefits ◽  
Total Output ◽  
Carbon Trading ◽  
Content Type ◽  
The Impact

Purpose Environmental problems such as CO2 (Carbon Dioxide) emissions have seriously affected the development of the steel industry, which has urged the industry to adopt a more effective emission reduction policy. This paper aims to analyze the impact of various CO2 emission reduction policies combinations on the economic benefits and environmental changes of the steel industry and to determine the scope of application. Design/methodology/approach To compare the impact and applicable implementation conditions, a production decision game model that incorporates these two policies has been constructed. Short-, medium- and long-term constraints are set on the emission reduction indicators and the indicators’ changes under various scenarios are compared. Findings In the case of a single emission reduction policy, the carbon trading (CT) mechanism is better than the carbon tax mechanism. The mixed carbon trading mechanism is superior to the mixed carbon tax mechanism in terms of total output and subsidies, but worse in terms of overall social welfare, producer surplus and macro losses. Originality/value This paper constructs multiple emission reduction and production backgrounds and discusses the impact of the comprehensive implementation of these policies, which is practically absent in previous studies. It is in line with the current industrial policy for stable production and environmental protection and also provides a reference for the formulation of detailed policies in the future.

scholarly journals Does Emission Trading Improve Carbon Emission Efficiency of China’s Iron and Steel Industry? An Exploration Using a DEA-SBM and Difference-In-Differences Approach

2021 ◽  
Author(s):  
Xiping Wang ◽  
Sujing Wang
Keyword(s):  
Steel Industry ◽  
Carbon Emission ◽  
Emission Trading ◽  
Energy Structure ◽  
Iron And Steel Industry ◽  
Low Carbon ◽  
Difference In Differences ◽  
Iron And Steel ◽  
Emission Efficiency ◽  
The Impact

Abstract As an effective tool of carbon emission reduction, emission trading has been widely used in many countries. Since 2013, China implemented carbon emission trading in seven provinces and cities, with iron and steel industry included in the first batch of pilot industries. This study attempts to explore the policy effect of emission trading on iron and steel industry in order to provide data and theoretical support for the low-carbon development of iron and steel industry as well as the optimization of carbon market. With panel data of China’s 29 provinces from 2006 to 2017, this study adopted a DEA-SBM model to measure carbon emission efficiency of China’s iron and steel industry (CEI) and a difference-in-differences (DID) method to explore the impact of emission trading on CEI. Moreover, regional heterogeneity and influencing mechanisms were further investigated, respectively. The results indicate that: (1) China's emission trading has a significant and sustained effect on carbon abatement of iron and steel industry, increasing the annual average CEI by 12.6% in pilot provinces. (2) The policy effects are heterogeneous across diverse regions. Higher impacts are found in the western and eastern regions, whereas the central region is not significant. (3) Emission trading improves CEI by stimulating technology innovation, reducing energy intensity, and adjusting energy structure. (4) Economic level and industrial structure are negatively related to CEI, while environmental governance and openness degree have no obvious impacts. Finally, according to the results and conclusions, some specific suggestions are proposed.

scholarly journals Research on the Impact of Various Emission Reduction Policies on China’s Iron and Steel Industry Production and Economic Level under the Carbon Trading Mechanism

Energies ◽  
2019 ◽  
Vol 12 (9) ◽  
pp. 1624 ◽  
Author(s):  
Ye Duan ◽  
Zenglin Han ◽  
Hailin Mu ◽  
Jun Yang ◽  
Yonghua Li
Keyword(s):  
Steel Industry ◽  
Emission Reduction ◽  
Dynamic Game ◽  
High Energy ◽  
Future Research ◽  
Carbon Trading ◽  
Iron And Steel ◽  
Economic Level ◽  
The Government ◽  
The Impact

To study the emission reduction policies’ impact on the production and economic level of the steel industry, this paper constructs a two-stage dynamic game model and analyzes various emission reduction policies’ impact on the steel industry and enterprises. New results are observed in the study: (1) With the increasing emission reduction target (15%–30%) and carbon quota trading price (12.65–137.59 Yuan), social welfare and producer surplus show an increasing trend and emission macro losses show a decreasing trend. (2) Enterprises’ reduction ranges in northwestern and southwestern regions are much higher than that of the other regions; the northeastern enterprise has the smallest reductions range. (3) When the market is balanced (0.8543–0.9320 billion tons), the steel output has decreased and the polarization in various regions has been alleviated to some extent. The model is the abstraction and assumption of reality, which makes the results have some deviations. However, these will provide references to formulate reasonable emissions reduction and production targets. In addition, the government needs to consider the whole and regional balance and carbon trading benchmark value when deciding the implementation of a single or mixed policy. Future research will be more closely linked to national policies and gradually extended to other high-energy industries.

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