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Technological change under residual risk regulation: The case of coke ovens in the U.S. steel industry

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  • Timothy Considine
  • Graham Davis
  • Donita Marakovits

Abstract

An engineering-economic model is used within a dynamic setting to determine the least cost mix of investment and import activities as the U.S. steel industry faces successively tighter controls on coke oven emissions over the next 10 years. In response to Maximum Achievable Control Technology (MACT) standards proposed for 1995, U.S. steel producers would likely export their toxic pollution by importing 6 million tons of coke per year. About 4 million tons of coke oven capacity is retrofit and about 1 million tons of annual coke consumption is replaced by new iron technologies, such as Corex. The Lowest Achievable Emission Rate (LAER) standards proposed for 1998 roughly double the coke oven retirements estimated to occur under MACT. Coke imports also are substantial but are no higher than under MACT because the additional time allows the industry to invest in more coke-saving blast furnaces and in new less toxic coke-making technologies, such as the Jewell process. The LAER standards in conjunction with higher capital costs, however, force coke imports to more than 8 million tons per year and sharply increase imports of semi-finished steel. Such a situation could exacerbate existing disputes on international steel trade. Copyright Kluwer Academic Publishers 1993

Suggested Citation

  • Timothy Considine & Graham Davis & Donita Marakovits, 1993. "Technological change under residual risk regulation: The case of coke ovens in the U.S. steel industry," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 3(5), pages 437-455, October.
    • Handle: RePEc:kap:enreec:v:3:y:1993:i:5:p:437-455
    DOI: 10.1007/BF00310247
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    References listed on IDEAS

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    1. Ann Fisher & Lauraine G. Chestnut & Daniel M. Violette, 1989. "The value of reducing risks of death: A note on new evidence," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 8(1), pages 88-100.
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    Cited by:

    1. Lange, Ian, 2010. "Steam versus coking coal and the acid rain program," Energy Policy, Elsevier, vol. 38(3), pages 1251-1254, March.

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