The Efficiency Of The Innovation System Of China’s Iron And Steel Industry In The Low-carbon Trade Constraints

The low-carbon economy will be the future development trend of the worldeconomy, as a high-carbon industry the steel industry must actively adapt to thechange and actively carry out technological innovation, reduce the implicit carbonemissions. Compared to the developed countries of the world, China’s technologylevel is relatively backward, coupled with the huge steel production, China’s iron andsteel manufacturing implies a huge amount of carbon emissions. Developed countriesin the world are developing a low-carbon trade barriers, which make China’s exportsof steel products in an unfavorable international environment. In order to adapt to thetrend of the world economy as well as the new trade rules, innovation is the onlychoice for China’s iron and steel industry.Study on the efficiency of the innovationsystem of China’s iron and steel industry in the low-carbon trade constraints isnecessary. The paper makes an objective assessment of the efficiency of theinnovation system of China’s iron and steel industry, and puts forwardrecommendations to improve the efficiency of China’s iron and steel manufacturinginnovation to improve our the international competitiveness of the steel industry, thusthe research has important theoretical and practical significance.The paper is based on the background of low-carbon economy, so firstly thepaper uses the input-output method to calculate the implicit carbon emissions ofChina’s iron and steel export trade, in the calculation process the article bases on the2007input-output table and looks up relative statistical yearbook to get data,thus thepaper work out implicit carbon emissions of China’s iron and steel export trade of theyear from2005to2011,they are, respectively0.85,2.99,4.73,4.94,2.08,4.17,5.30(unit:million tons).On the basis of implied carbon emissions of China’s iron and steel export trade,this paper establishes a comprehensive and representative evaluation index system,and then uses DEA C2R model to assess the efficiency of the innovation system ofChina’s iron and steel industry. By using the LINDO software the paper works out theefficiency value of China’s iron and steel manufacturing innovation system during the year from2005to2011, and do the overall efficiency analysis, scale efficiencyanalysis, projection analysis, and shadow price analysis.The empirical results show that: firstly, as to the comprehensive efficiency, DEAis efficient in the year2005,2009,2011; DEA is inefficient in the year2006,2007,2008,2010.The average DEA value of the seven years is0.9189, whichindicates that the efficiency of the innovation system of China’s iron and steel industryis relatively high. Secondly, as to the scale efficiency, the years of2005,2009,2011which are at the stage of constant returns to scale, are effective;2006,2007,2008,2010which are in the stage of increasing returns to scale are invalid. Thirdly, the projectionanalysis provides the target values of the non-DEA effective indicators which are thebasis for the improvement of the innovation efficiency of China’s iron and steelmanufacturing industry.Fourthly, the shadow analysis finds out the indicators thathave great impact on the innovation system efficiency of the steel manufacturingindustry, these indicators include implicit carbon emissions、the number of researchersand research funding.Thus, to improve the innovation efficiency of China’s iron andsteel industry, there are three ways, that is improving the technology to reduce theimplicit carbon emissions in the production process, cultivating high-tech talents andincreasing the research funds. Take the year2010for example,11thousandsresearchers should be added,3.4billion more research funds should be added. Theabove data show that there isn’t enough input in China’s iron and steel industry, thenumber of researchers and research funding should be increased.According to the empirical results, this paper identifies the indicators that havegreat impact on the innovation system efficiency of the steel manufacturing industry,they are implicit carbon emissions、the number of researchers and research funds. Inorder to improve the innovation efficiency of China’s iron and steel industry, weshould improve the above three aspects, that is improving the technology to reducethe implicit carbon emissions in the production process, cultivating high-tech talentsand increasing the research funds. Thus this article puts forward fourrecommendations to improve the system efficiency of China’s iron and steelmanufacturing innovation, including to establish an open innovation strategy,promoting technological innovation, and the introduction of clean productionmechanisms to improve the intensity of carbon emissions, the introduction of a carbontax, improve the industrial chain, increase industrial concentration.