IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v43y2012i1p334-343.html
   My bibliography  Save this article

A system dynamics analysis of energy consumption and corrective policies in Iranian iron and steel industry

Author

Listed:
  • Ansari, Nastaran
  • Seifi, Abbas

Abstract

Iron and steel industry is the most energy intensive industrial sector in Iran. Long time subsidized energy has led to low energy efficiency in this industry. The sudden subsidy reform of energy prices in Iran is expected to have a great impact on steel production and energy consumption. A system dynamics model is presented in this paper to analyze steel demand, production and energy consumption in an integrated framework. A co-flow structure is used to show how subsidy reform affects energy consumption in the long run. The main focus of this paper is on direct and indirect natural gas consumption in the steel industry. Scrap based Electric Arc Furnace technology has been evaluated as an energy efficient way for steel making. The energy consumption in steel industry is estimated under various steel production and export scenarios while taking into account new energy prices to see the outlook of possible energy demand in steel industry over next 20 years. For example it is shown that under reference production scenario, potential reduction in gas consumption forced by complete removal of energy subsidy and utilizing scrap could lead to 85 billion cubic meters of gas saving over the next 20 years.

Suggested Citation

  • Ansari, Nastaran & Seifi, Abbas, 2012. "A system dynamics analysis of energy consumption and corrective policies in Iranian iron and steel industry," Energy, Elsevier, vol. 43(1), pages 334-343.
    • Handle: RePEc:eee:energy:v:43:y:2012:i:1:p:334-343
    DOI: 10.1016/j.energy.2012.04.020
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544212003003
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2012.04.020?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. Gielen, Dolf & Moriguchi, Yuichi, 2002. "CO2 in the iron and steel industry: an analysis of Japanese emission reduction potentials," Energy Policy, Elsevier, vol. 30(10), pages 849-863, August.
    2. Kong Chyong Chi & David M. Reiner & William J. Nuttall, 2009. "Dynamics of the UK Natural Gas Industry: System Dynamics Modelling and Long-Term Energy Policy Analysis," Working Papers EPRG 0913, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    3. Kirschen, Marcus & Badr, Karim & Pfeifer, Herbert, 2011. "Influence of direct reduced iron on the energy balance of the electric arc furnace in steel industry," Energy, Elsevier, vol. 36(10), pages 6146-6155.
    4. Yih-Liang Chan, David & Yang, Kuang-Han & Lee, Jenq-Daw & Hong, Gui-Bing, 2010. "The case study of furnace use and energy conservation in iron and steel industry," Energy, Elsevier, vol. 35(4), pages 1665-1670.
    5. Tongpool, Rungnapa & Jirajariyavech, Athiwatr & Yuvaniyama, Chantana & Mungcharoen, Thumrongrut, 2010. "Analysis of steel production in Thailand: Environmental impacts and solutions," Energy, Elsevier, vol. 35(10), pages 4192-4200.
    6. Guo, Z.C. & Fu, Z.X., 2010. "Current situation of energy consumption and measures taken for energy saving in the iron and steel industry in China," Energy, Elsevier, vol. 35(11), pages 4356-4360.
    7. Kiani, Behdad & Ali Pourfakhraei, Mohammad, 2010. "A system dynamic model for production and consumption policy in Iran oil and gas sector," Energy Policy, Elsevier, vol. 38(12), pages 7764-7774, December.
    8. Johansson, Maria T. & Söderström, Mats, 2011. "Options for the Swedish steel industry – Energy efficiency measures and fuel conversion," Energy, Elsevier, vol. 36(1), pages 191-198.
    9. Ruth, Matthias & Amato, Anthony, 2002. "Vintage structure dynamics and climate change policies: the case of US iron and steel," Energy Policy, Elsevier, vol. 30(7), pages 541-552, June.
    10. Cai, Wenjia & Wang, Can & Wang, Ke & Zhang, Ying & Chen, Jining, 2007. "Scenario analysis on CO2 emissions reduction potential in China's electricity sector," Energy Policy, Elsevier, vol. 35(12), pages 6445-6456, December.
    11. Li, Junchen & Dong, Xiucheng & Shangguan, Jianxin & Hook, Mikael, 2011. "Forecasting the growth of China’s natural gas consumption," Energy, Elsevier, vol. 36(3), pages 1380-1385.
    12. Wang, Ke & Wang, Can & Lu, Xuedu & Chen, Jining, 2007. "Scenario analysis on CO2 emissions reduction potential in China's iron and steel industry," Energy Policy, Elsevier, vol. 35(4), pages 2320-2335, April.
    13. Wei, Yi-Ming & Liao, Hua & Fan, Ying, 2007. "An empirical analysis of energy efficiency in China's iron and steel sector," Energy, Elsevier, vol. 32(12), pages 2262-2270.
    14. Zhang, Jianling & Wang, Guoshun, 2008. "Energy saving technologies and productive efficiency in the Chinese iron and steel sector," Energy, Elsevier, vol. 33(4), pages 525-537.
    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. Sinha, Rakesh Kumar & Chaturvedi, Nitin Dutt, 2019. "A review on carbon emission reduction in industries and planning emission limits," Renewable and Sustainable Energy Reviews, Elsevier, vol. 114(C), pages 1-1.
    2. Zhang, Shaohui & Worrell, Ernst & Crijns-Graus, Wina & Wagner, Fabian & Cofala, Janusz, 2014. "Co-benefits of energy efficiency improvement and air pollution abatement in the Chinese iron and steel industry," Energy, Elsevier, vol. 78(C), pages 333-345.
    3. Chen, Wenying & Yin, Xiang & Ma, Ding, 2014. "A bottom-up analysis of China’s iron and steel industrial energy consumption and CO2 emissions," Applied Energy, Elsevier, vol. 136(C), pages 1174-1183.
    4. An, Runying & Yu, Biying & Li, Ru & Wei, Yi-Ming, 2018. "Potential of energy savings and CO2 emission reduction in China’s iron and steel industry," Applied Energy, Elsevier, vol. 226(C), pages 862-880.
    5. Li, Yuan & Zhu, Lei, 2014. "Cost of energy saving and CO2 emissions reduction in China’s iron and steel sector," Applied Energy, Elsevier, vol. 130(C), pages 603-616.
    6. Leonardo Leoni & Alessandra Cantini & Filippo De Carlo & Marcello Salvio & Chiara Martini & Claudia Toro & Fabrizio Martini, 2021. "Energy-Saving Technology Opportunities and Investments of the Italian Foundry Industry," Energies, MDPI, vol. 14(24), pages 1-29, December.
    7. Ke Wang & Linan Che & Chunbo Ma & Yi-Ming Wei, 2017. "The Shadow Price of CO2 Emissions in China's Iron and Steel Industry," CEEP-BIT Working Papers 105, Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology.
    8. Sheinbaum, Claudia & Ozawa, Leticia & Castillo, Daniel, 2010. "Using logarithmic mean Divisia index to analyze changes in energy use and carbon dioxide emissions in Mexico's iron and steel industry," Energy Economics, Elsevier, vol. 32(6), pages 1337-1344, November.
    9. He, Feng & Zhang, Qingzhi & Lei, Jiasu & Fu, Weihui & Xu, Xiaoning, 2013. "Energy efficiency and productivity change of China’s iron and steel industry: Accounting for undesirable outputs," Energy Policy, Elsevier, vol. 54(C), pages 204-213.
    10. Lin, Boqiang & Wang, Xiaolei, 2014. "Promoting energy conservation in China's iron & steel sector," Energy, Elsevier, vol. 73(C), pages 465-474.
    11. Hasanbeigi, Ali & Morrow, William & Sathaye, Jayant & Masanet, Eric & Xu, Tengfang, 2013. "A bottom-up model to estimate the energy efficiency improvement and CO2 emission reduction potentials in the Chinese iron and steel industry," Energy, Elsevier, vol. 50(C), pages 315-325.
    12. Arens, Marlene & Worrell, Ernst & Schleich, Joachim, 2012. "Energy intensity development of the German iron and steel industry between 1991 and 2007," Energy, Elsevier, vol. 45(1), pages 786-797.
    13. Zhu, Lei & Zhang, Xiao-Bing & Li, Yuan & Wang, Xu & Guo, Jianxin, 2017. "Can an emission trading scheme promote the withdrawal of outdated capacity in energy-intensive sectors? A case study on China's iron and steel industry," Energy Economics, Elsevier, vol. 63(C), pages 332-347.
    14. Wang, Peng & Jiang, Zeyi & Geng, Xinyi & Hao, Shiyu & Zhang, Xinxin, 2014. "Quantification of Chinese steel cycle flow: Historical status and future options," Resources, Conservation & Recycling, Elsevier, vol. 87(C), pages 191-199.
    15. 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.
    16. Pardo, Nicolás & Moya, José Antonio, 2013. "Prospective scenarios on energy efficiency and CO2 emissions in the European Iron & Steel industry," Energy, Elsevier, vol. 54(C), pages 113-128.
    17. Liu, Shangwei & Tian, Xin & Cai, Wenjia & Chen, Weiqiang & Wang, Yafei, 2018. "How the transitions in iron and steel and construction material industries impact China’s CO2 emissions: Comprehensive analysis from an inter-sector linked perspective," Applied Energy, Elsevier, vol. 211(C), pages 64-75.
    18. Li Li & Yalin Lei & Dongyang Pan, 2016. "Study of CO 2 emissions in China’s iron and steel industry based on economic input–output life cycle assessment," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 81(2), pages 957-970, March.
    19. Hsu, Chung-Chun & Lo, Shang-Lien, 2017. "The potential for carbon abatement in Taiwan’s steel industry and an analysis of carbon abatement trends," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 1312-1323.
    20. Lin, Boqiang & Wu, Ya & Zhang, Li, 2011. "Estimates of the potential for energy conservation in the Chinese steel industry," Energy Policy, Elsevier, vol. 39(6), pages 3680-3689, June.

    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:energy:v:43:y:2012:i:1:p:334-343. 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.journals.elsevier.com/energy .

    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.