The Measurement And Research Of Energy Efficiency In The Steel Industry Listed Companies

Energy is an essential resource in economic development and the steel industry ispillar industry in national economic, it is necessary to research energy efficiency of thesteel industy. This study has studeid energy efficiency based on the followingbackground: first of all, energy shortages and energy inefficient is evident in China’seconomic development; then, the impact of environmental pollution caused byinefficient energy consumption become more and more serious; moreover,energy-intensive steel industry is the large energy consumption and environmentalpollution; Finally, according to the requirement of scientific development thegovernment has had growing importance to energy and environmental issues.Therefore, there is a theoretical and practical significance to measure and evaluateenergy efficiency, find out the reseason of low efficiency and imporve for steelcompanies. Furthermore, there is a practical significance to reduce energy dependenceon economic, for national energy security and improving the system of energyefficiency policy.Energy efficiency is an important index on the energy using, it is rich in meaning.Previous studies distinguished energy efficiency as a single-factor the energyefficiency and all-factors energy efficiency. In this paper, in order to reflect on theenergy efficiency of steel industry listed companies more fully, we used two stageLMDI method to measure energy efficincy based on single-factor method and usedDEA-Malmquiat method to measure all-factors energy efficiency.The paper contains six chapter, we have made a measurement and research ofenergy efficiency for the steel industry listed companies during2006to2010using animproved LMDI two-step decomposition method and DEA-Malmquiat method. Itunfolds as follows: At first, by the LMDI method we think that the total energyefficiency of listed companies was attributed to the improvement of efficiencytechnology. Then, we used DEA method, through BBC model we calculated puretechnical efficiency and scale efficiency of the steel industry listed companies form theangle of input and output, had analyzed the overall trend,returns to scale, the companyput into classified and redundancy analysis and so on; Movever, we calculated energyefficiency index, pure technical efficiency index and scale efficiency index of the steelcompany, pointing out that improvement of energy efficiency is caused mainly by technology progression by Malmquist index decomposition method. Finally, the papercompares the strengths and weaknesses of two methods. Meantime, we have givensome corresponding recommendations of business development.The innovation lies in these aspects: we have used a two-stage LMDI method toresearch energy efficiency in listed companies of the steel industry, according to theclassification of steel companies, we have made specific recommendations on energysaving; With BBC model and Malmquist index, we have measured energy efficiencyfrom two aspects of absolute and relative. From the cross-sectional data level, we havecompared the energy efficiency and redundancy level of different steel companies.From the time series level, we have decomposited and analyzd the improvements ofenergy efficiency. Through scale efficiency and technical efficiency frontier plot, wehave divided the company’s category and pointed out the direction for improvement.