Abstract
The iron and steel industry is one of the world’s as well as China’s largest energy CO2 emission sources. We calculated the cost of CO2 abatement (CCA), and give the marginal abatement cost curve of the main process of iron and steel production. Based on this, we analyse the cost-effectiveness of CO2 abatement technologies. Also, we define a two-country (home and foreign), two-goods (home goods and foreign goods) partial equilibrium model to simulate China’s iron and steel industry, and analyse the influence of CO2 price and free allocation to the production, price, income, profit and total emissions of China’s iron and steel industry. We found that a carbon market would increase the abatement cost and then increase the domestic price, but a reasonable free allocation could offset the profit loss partly, so it would not result in a huge profit loss to the industry.
Dr. Ying Fan, Professor, Center for Energy and Environmental Policy Research, Institute of Policy and Management, Chinese Academy of Sciences; Email: yfan@casipm.ac.cn.
Dr. Lei Zhu, Associate Professor, Center for Energy and Environmental Policy Research, Institute of Policy and Management, Chinese Academy of Sciences.
Ms. Yuan Li, Ph.D. Student, Center for Energy and Environmental Policy Research, Institute of Policy and Management, Chinese Academy of Sciences.
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Acknowledgments
The authors acknowledge the financial support of the Chinese Academy of Sciences (No. XDA05150700) and the National Natural Science Foundation of China (No.71273253 and No.71210005). We deeply appreciate the weekly seminars at CEEP in CAS, from which improvements on an earlier draft of this paper were made.
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Fan, Y., Zhu, L., Li, Y. (2016). Potential of CO2 Abatement Resulting from Energy Efficiency Improvements in China’s Iron and Steel Industry. In: Su, B., Thomson, E. (eds) China's Energy Efficiency and Conservation. SpringerBriefs in Environment, Security, Development and Peace, vol 30. Springer, Singapore. https://doi.org/10.1007/978-981-10-0737-8_5
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DOI: https://doi.org/10.1007/978-981-10-0737-8_5
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