IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v188y2024ics0301421524000934.html
   My bibliography  Save this article

Towards low-carbon steel: System dynamics simulation of policies impact on green hydrogen steelmaking in China and the European Union

Author

Listed:
  • Li, Chengzhe
  • Zhang, Libo
  • Wang, Qunwei
  • Zhou, Dequn

Abstract

Green hydrogen (GH) has been included in the steel emission reduction plans of many countries. This study evaluates the status quo of GH and steel industry and the related subsidy and regulatory policies in two major steelmaking countries/regions: China and the European Union. A system dynamics model coupling GH and steel industry is established to conduct simulation analysis of the low-carbon transition path of GH replacing fossil fuels in these two countries/regions' steel industry under several carbon emission reduction scenarios. Results verify the feasibility of using GH in the steelmaking and GH's contribution to the steel industry's carbon emission reduction. And this study assesses the policy impacts on the development of green hydrogen steel and gives specific policy implications on the timing and measures. The methodology and policy tools in this study also provide the reference for other countries who are still in wait-and-see attitude towards the development of GH steel.

Suggested Citation

  • Li, Chengzhe & Zhang, Libo & Wang, Qunwei & Zhou, Dequn, 2024. "Towards low-carbon steel: System dynamics simulation of policies impact on green hydrogen steelmaking in China and the European Union," Energy Policy, Elsevier, vol. 188(C).
    • Handle: RePEc:eee:enepol:v:188:y:2024:i:c:s0301421524000934
    DOI: 10.1016/j.enpol.2024.114073
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421524000934
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2024.114073?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Qi, Shaozhou & Cheng, Shihan & Tan, Xiujie & Feng, Shenghao & Zhou, Qi, 2022. "Predicting China's carbon price based on a multi-scale integrated model," Applied Energy, Elsevier, vol. 324(C).
    2. Kelly Sims Gallagher & Fang Zhang & Robbie Orvis & Jeffrey Rissman & Qiang Liu, 2019. "Assessing the Policy gaps for achieving China’s climate targets in the Paris Agreement," Nature Communications, Nature, vol. 10(1), pages 1-10, December.
    3. Takuma Watari & Sho Hata & Kenichi Nakajima & Keisuke Nansai, 2023. "Limited quantity and quality of steel supply in a zero-emission future," Nature Sustainability, Nature, vol. 6(3), pages 336-343, March.
    4. Rootzén, Johan & Johnsson, Filip, 2016. "Paying the full price of steel – Perspectives on the cost of reducing carbon dioxide emissions from the steel industry," Energy Policy, Elsevier, vol. 98(C), pages 459-469.
    5. Hsu, Chiung-Wen, 2012. "Using a system dynamics model to assess the effects of capital subsidies and feed-in tariffs on solar PV installations," Applied Energy, Elsevier, vol. 100(C), pages 205-217.
    6. Zhang, Libo & Chen, Changqi & Wang, Qunwei & Zhou, Dequn, 2021. "The impact of feed-in tariff reduction and renewable portfolio standard on the development of distributed photovoltaic generation in China," Energy, Elsevier, vol. 232(C).
    7. Ren, Ming & Lu, Pantao & Liu, Xiaorui & Hossain, M.S. & Fang, Yanru & Hanaoka, Tatsuya & O'Gallachoir, Brian & Glynn, James & Dai, Hancheng, 2021. "Decarbonizing China’s iron and steel industry from the supply and demand sides for carbon neutrality," Applied Energy, Elsevier, vol. 298(C).
    8. Ren, Lei & Zhou, Sheng & Peng, Tianduo & Ou, Xunmin, 2021. "A review of CO2 emissions reduction technologies and low-carbon development in the iron and steel industry focusing on China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 143(C).
    9. Ang, B. W., 2005. "The LMDI approach to decomposition analysis: a practical guide," Energy Policy, Elsevier, vol. 33(7), pages 867-871, May.
    10. Qusay Hassan & Aws Zuhair Sameen & Hayder M. Salman & Marek Jaszczur, 2023. "A Roadmap with Strategic Policy toward Green Hydrogen Production: The Case of Iraq," Sustainability, MDPI, vol. 15(6), pages 1-22, March.
    11. Côté, Elizabeth & Salm, Sarah, 2022. "Risk-adjusted preferences of utility companies and institutional investors for battery storage and green hydrogen investment," Energy Policy, Elsevier, vol. 163(C).
    12. Farrell, Niall, 2023. "Policy design for green hydrogen," Renewable and Sustainable Energy Reviews, Elsevier, vol. 178(C).
    13. Ren, Lei & Zhou, Sheng & Ou, Xunmin, 2023. "The carbon reduction potential of hydrogen in the low carbon transition of the iron and steel industry: The case of China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 171(C).
    14. Gao, Jiayang & Zhang, Tao, 2022. "Effects of public funding on the commercial diffusion of on-site hydrogen production technology: A system dynamics perspective," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    15. Xi Yang & Chris P. Nielsen & Shaojie Song & Michael B. McElroy, 2022. "Breaking the hard-to-abate bottleneck in China’s path to carbon neutrality with clean hydrogen," Nature Energy, Nature, vol. 7(10), pages 955-965, October.
    16. Zhenyu Zhuo & Ershun Du & Ning Zhang & Chris P. Nielsen & Xi Lu & Jinyu Xiao & Jiawei Wu & Chongqing Kang, 2022. "Cost increase in the electricity supply to achieve carbon neutrality in China," Nature Communications, Nature, vol. 13(1), pages 1-13, December.
    17. Li, Chengzhe & Zhang, Libo & Ou, Zihan & Ma, Jiayu, 2022. "Using system dynamics to evaluate the impact of subsidy policies on green hydrogen industry in China," Energy Policy, Elsevier, vol. 165(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yang, Honghua & Ma, Linwei & Li, Zheng, 2023. "Tracing China's steel use from steel flows in the production system to steel footprints in the consumption system," Renewable and Sustainable Energy Reviews, Elsevier, vol. 172(C).
    2. Kimon Keramidas & Silvana Mima & Adrien Bidaud, 2024. "Opportunities and roadblocks in the decarbonisation of the global steel sector: A demand and production modelling approach," Post-Print hal-04383385, HAL.
    3. Li, Chengzhe & Zhang, Libo & Ou, Zihan & Ma, Jiayu, 2022. "Using system dynamics to evaluate the impact of subsidy policies on green hydrogen industry in China," Energy Policy, Elsevier, vol. 165(C).
    4. Zhang, Zhiqing & Zhong, Weihuang & Mao, Chengfang & Xu, Yuejiang & Lu, Kai & Ye, Yanshuai & Guan, Wei & Pan, Mingzhang & Tan, Dongli, 2024. "Multi-objective optimization of Fe-based SCR catalyst on the NOx conversion efficiency for a diesel engine based on FGRA-ANN/RF," Energy, Elsevier, vol. 294(C).
    5. Guo, Zhi & Mao, Xianqiang & Lu, Jianhong & Gao, Yubing & Chen, Xing & Zhang, Shining & Ma, Zhiyuan, 2024. "Can a new power system create more employment in China?," Energy, Elsevier, vol. 295(C).
    6. Zhang, Hanxin & Sun, Wenqiang & Li, Weidong & Ma, Guangyu, 2022. "A carbon flow tracing and carbon accounting method for exploring CO2 emissions of the iron and steel industry: An integrated material–energy–carbon hub," Applied Energy, Elsevier, vol. 309(C).
    7. Lin, Yuancheng & Ma, Linwei & Li, Zheng & Ni, Weidou, 2023. "The carbon reduction potential by improving technical efficiency from energy sources to final services in China: An extended Kaya identity analysis," Energy, Elsevier, vol. 263(PE).
    8. Shuangping Wu & Anjun Xu, 2021. "Calculation Method of Energy Saving in Process Engineering: A Case Study of Iron and Steel Production Process," Energies, MDPI, vol. 14(18), pages 1-15, September.
    9. Tan, Dongli & Li, Dongmei & Wang, Su & Zhang, Zhiqing & Tian, Jie & Li, Jiangtao & Lv, Junshuai & Zheng, Wenling & Ye, Yanshuai, 2023. "Evaluation and optimization of hydrogen addition on the performance and emission for biodiesel dual-fuel engines with different blend ratios based on the response surface method," Energy, Elsevier, vol. 283(C).
    10. Zhang, Zhiqing & Wang, Su & Pan, Mingzhang & Lv, Junshuai & Lu, Kai & Ye, Yanshuai & Tan, Dongli, 2024. "Utilization of hydrogen-diesel blends for the improvements of a dual-fuel engine based on the improved Taguchi methodology," Energy, Elsevier, vol. 292(C).
    11. Xu, Tingting & Huo, Zhaoyi & Wang, Wenjing & Xie, Ning & Li, Lili & Liu, Yingjie & Mu, Lin, 2024. "Evaluation of by-product-gas utilization options for carbon reduction at an integrated iron and steel mill," Energy, Elsevier, vol. 294(C).
    12. Zhang, Zhiqing & Hu, Jingyi & Tan, Dongli & Li, Junming & Jiang, Feng & Yao, Xiaoxue & Yang, Dixin & Ye, Yanshuai & Zhao, Ziheng & Yang, Guanhua, 2023. "Multi-objective optimization of the three-way catalytic converter on the combustion and emission characteristics for a gasoline engine," Energy, Elsevier, vol. 277(C).
    13. Chen, Huadun & Du, Qianxi & Huo, Tengfei & Liu, Peiran & Cai, Weiguang & Liu, Bingsheng, 2023. "Spatiotemporal patterns and driving mechanism of carbon emissions in China's urban residential building sector," Energy, Elsevier, vol. 263(PE).
    14. Zhang, Shulin & Su, Xiaoling & Singh, Vijay P & Ayantobo, Olusola Olaitan & Xie, Juan, 2018. "Logarithmic Mean Divisia Index (LMDI) decomposition analysis of changes in agricultural water use: a case study of the middle reaches of the Heihe River basin, China," Agricultural Water Management, Elsevier, vol. 208(C), pages 422-430.
    15. Lu, I.J. & Lin, Sue J. & Lewis, Charles, 2007. "Decomposition and decoupling effects of carbon dioxide emission from highway transportation in Taiwan, Germany, Japan and South Korea," Energy Policy, Elsevier, vol. 35(6), pages 3226-3235, June.
    16. Sapkota, Krishna & Gemechu, Eskinder & Oni, Abayomi Olufemi & Ma, Linwei & Kumar, Amit, 2022. "Greenhouse gas emissions from Canadian oil sands supply chains to China," Energy, Elsevier, vol. 251(C).
    17. Kwag, Kyuhyeong & Shin, Hansol & Oh, Hyobin & Yun, Sangmin & Kim, Tae Hyun & Hwang, Pyeong-Ik & Kim, Wook, 2023. "Bilevel programming approach for the quantitative analysis of renewable portfolio standards considering the electricity market," Energy, Elsevier, vol. 263(PD).
    18. Ronald E. Miller & Umed Temurshoev, 2017. "Output Upstreamness and Input Downstreamness of Industries/Countries in World Production," International Regional Science Review, , vol. 40(5), pages 443-475, September.
    19. Lan, Yuncheng & Lu, Junhui & Wang, Suilin, 2023. "Study of the geometry and structure of a thermoelectric leg with variable material properties and side heat dissipation based on thermodynamic, economic, and environmental analysis," Energy, Elsevier, vol. 282(C).
    20. Trotta, Gianluca, 2020. "Assessing energy efficiency improvements and related energy security and climate benefits in Finland: An ex post multi-sectoral decomposition analysis," Energy Economics, Elsevier, vol. 86(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:188:y:2024:i:c:s0301421524000934. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.