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Research on the Impact of Various Emission Reduction Policies on China’s Iron and Steel Industry Production and Economic Level under the Carbon Trading Mechanism

Author

Listed:
  • Ye Duan

    (College of Urban and Environmental, Liaoning Normal University, Dalian 116029, China)

  • Zenglin Han

    (Center for Studies of Marine Economy and Sustainable Development, Liaoning Normal University, Dalian 116029, China)

  • Hailin Mu

    (Key Laboratory of Ocean Energy Utilization and Energy Conservation of Ministry of Education, Dalian University of Technology, Dalian 116024, China)

  • Jun Yang

    (Human Settlements Research Center, Liaoning Normal University, Dalian 116029, China)

  • Yonghua Li

    (College of Urban and Environmental, Liaoning Normal University, Dalian 116029, China)

Abstract

To study the emission reduction policies’ impact on the production and economic level of the steel industry, this paper constructs a two-stage dynamic game model and analyzes various emission reduction policies’ impact on the steel industry and enterprises. New results are observed in the study: (1) With the increasing emission reduction target (15%–30%) and carbon quota trading price (12.65–137.59 Yuan), social welfare and producer surplus show an increasing trend and emission macro losses show a decreasing trend. (2) Enterprises’ reduction ranges in northwestern and southwestern regions are much higher than that of the other regions; the northeastern enterprise has the smallest reductions range. (3) When the market is balanced (0.8543–0.9320 billion tons), the steel output has decreased and the polarization in various regions has been alleviated to some extent. The model is the abstraction and assumption of reality, which makes the results have some deviations. However, these will provide references to formulate reasonable emissions reduction and production targets. In addition, the government needs to consider the whole and regional balance and carbon trading benchmark value when deciding the implementation of a single or mixed policy. Future research will be more closely linked to national policies and gradually extended to other high-energy industries.

Suggested Citation

  • Ye Duan & Zenglin Han & Hailin Mu & Jun Yang & Yonghua Li, 2019. "Research on the Impact of Various Emission Reduction Policies on China’s Iron and Steel Industry Production and Economic Level under the Carbon Trading Mechanism," Energies, MDPI, vol. 12(9), pages 1-26, April.
    • Handle: RePEc:gam:jeners:v:12:y:2019:i:9:p:1624-:d:226836
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    2. Di Li & Qianbin Di & Hailin Mu & Zenglin Han & Hongye Wang & Ye Duan, 2022. "Research on the Impact of Output Adjustment Strategy and Carbon Trading Policy on the Response, Stability and Complexity of Steel Market under the Dynamic Game," Sustainability, MDPI, vol. 14(19), pages 1-40, September.
    3. Wen-Hsien Tsai, 2020. "Carbon Emission Reduction—Carbon Tax, Carbon Trading, and Carbon Offset," Energies, MDPI, vol. 13(22), pages 1-7, November.
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    5. Feng, Huchen & Hu, Yu-Jie & Li, Chengjiang & Wang, Honglei, 2023. "Rolling horizon optimisation strategy and initial carbon allowance allocation model to reduce carbon emissions in the power industry: Case of China," Energy, Elsevier, vol. 277(C).
    6. Di Li & Qianbin Di & Hao Zhang & Daquan Zhang & Zenglin Han & Ye Duan, 2022. "Research on the Impact of Output Adjustment Strategy and Carbon Tax Policy on the Stability of the Steel Market," Energies, MDPI, vol. 15(18), pages 1-31, September.

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