Study On The Relationship Between Iron & Steel Industry Energy Consumption And Production

Energy was a kind of critical resources to society progress and strategic materials to national security. The main characteristics of modern economic and social development were based on huge energy consumption. However, with the human use of more and more energy, especially fossil energy, it has become increasingly obvious that energy constrainted economic and social development and effected natural environment. Now, more and more experts and scholars focused on energy problems. Iron & Steel Industry is not only the pillar industry of national economy, but also an energy-intensive industry in China. Energy costs accounted for the production of iron and steel industry about 1/3 operation costs. So, correctly handling the relationship between energy utilize and Iron & Steel Industry development, deeply analyzing influence factors of energy consumption change in Iron & Steel Industry, researching on the system and mechanism to optimal energy utilization and putting forward advises to improve the iron and steel industry energy utilization methods and efficiency. Therefore, the following aspects were studied through using cointegration theory, complete factor decomposition theory and substitution elasticity theory:(1) Theoretical analysis of iron & steel industry development under restraint of energy. Introduced the restraint of energy utilization equation into the economic growth models, discussed how to realize industry sustainable growth under the condition of sustainable utilization of energy. And draw the conclusion:the source motive force of the modern industry growth is the progress of technology. Only by improving the level of productive technology, reducing energy consumption, improving the efficiency of energy utilization, it is possible to realize industry sustainable growth in long term under the condition of sustainable utilization of energy.(2) Analyzing current status of China's Iron & Steel Industry energy consumption. Iron & Steel Industry experienced sustained and rapid development. However, rapid growth of China's Iron & Steel Industry largely depended on the much consumption of resources, therefore, it has not fundamentally changed "high-consumption, high-emission, low-efficiency" extensively growth. The main factors influenced Iron & Steel Industry energy efficiency of China as following:energy consumption structure, concentration of iron and steel industry, the level of technology, policies and regulations, energy prices and so on.(3) Analysis of the main factors on changes of Iron & Steel Industry energy consumption intensity. Based on the complete decomposition model about energy consumption intensity, the factors which caused the changes of energy consumption intensity of Iron & Steel Industry in china were classified into structure effect and efficiency effect. Thus, the decomposition model of energy consumption intensity of Iron & Steel Industry was established. We can get the following results:The major factor of the changes of energy consumption intensity in Iron & Steel Industry was efficiency effect which was caused by technological progress, while the structure effect had a negative effect on energy efficiency.(4) An empirical study on the dynamic econometrics model of Iron & Steel Industry energy consumption. Dynamic interactions are studied between gross output value and energy-consumption of Iron & Steel Industry, through the variable stationary characterization, co-integration test, error correction model and Granger causality test. The results as following: Long time dynamic co-integration relationship was existed between gross output value and coal consumption and power consumption in Iron & Steel Industry. However, other kinds of energy have no relationship with gross output value; coal consumption is the granger cause of gross output value of iron and steel industry but not vice versa; when coal consumption increases 0.8%, the gross output value will increases 1%.(5) Research on Iron & Steel Industry energy substitution elasticity. MES model was established based on translog production cost function. Energy, capital and labor were main production factors in this model. Substitution elasticity was analyzed. The result as following: Self-price elasticity(SPE)of energy, capital and labor was less than zero; SPE of capital was the smallest; Cross-price elasticity and Morishima substitution elasticity greater than zero; The results proved substitution relationship between energy and capital/labor, and energy can effectively substitute labor and capital but the substitution of labor and capital to energy is low.(6) Study on developing countermeasures of iron and steel industry by mitigating energy constraints. Based on the theory of industrial ecology, we compared with the traditional production patterns and new production patterns in Iron & Steel Industry. The energy-saving potential of iron and steel enterprises was studied. Finally, some policies were advised by analyzing problems of old policy system of the industry in this part.