This is a past event.
Join us for "CALCULATING ENERGY EFFICIENCY: THE CASE OF STEEL PRODUCTION" presented by Latika Gupta, Assistant Professor of Economics in the School of Business and Economics at MTU.
Abstract: This paper analyzes energy efficiency of steel across top steel producing countries since iron and steel industry has some of the highest levels of emissions and energy consumptions. We calculate both the direct and indirect effects (substitution effects through energy consumption) of prices of factors of production on energy efficiency of steel production. While a similar analysis has been performed for European countries that only dominate 7% of the market, the analysis has not been performed for top producers such as US, China, Russia, Japan, and India which will be the focus of this project. In addition, to our knowledge there have been little or no attempts to study energy efficiency of steel production that involve the economic climate. We find that as energy prices go up, the substitution effect decreases production of steel, but rebound effects cancel out some of those effects. Eventually, individual economic conditions and investment climate play a bigger role. Our research highlights the role of regulations and finance in emissions in the steel industry. Our results provide impetus to further study energy efficiency and carbon emissions in energy intensive industries.