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A System Dynamic Study in Steel Industry for the Strategy of CO2 Mitigation

The development of steel industry makes progress simultaneously with economy and society of a country. The steel industry is an important industry for each country. From 2001, there was an insufficient supply gap of steel due to strong demand of China, which pushes main integrated steel works to increase their capacities. However, the mitigation pressure of the emission of Green House Gas make a limitations for capacity expansion. The objective of this study is to make appropriate policies for integrated steel works to cope with new operation environment.
From the analysis of steel industry, this study discovers the features and the related operation issues of global steel industry. The relationship between production and CO2 emission was investigated, and the casual loop among the production, revenue, and CO2 emission was analyzed. A dynamic model was developed by system dynamics approach and related tools to simulate the dynamic relationship between the revenue and CO2 emission of steel work. After thorough tests of reliability, model behavior, and policy implications, this model was used to investigate the influence of main operational and environmental parameters on the revenue of steel work. The appropriate production policies for steel works was also proposed.
Simulation results showed that, there was no universal production policy without the economic penalty for CO2 emission, but keeping the production under regulation limit was the most suitable strategy after the implementation of economic penalty. Increasing energy utilization efficiency, the ration of R&D budget in annual profit, and lowering the growth rate of production would facilitate the revenue increase of steel work. The simultaneous adjustment of these parameters could downgrade the negative effect of economic penalty.
The main strategy to cope with the pressure of the CO2 mitigation is to reduce the unit cost of mitigation. Four approaches can be adopted by the steel work to tackle the CO2 mitigation. They are (1) carefully scheduling the capacity expansion of steel work, (2) actively deriving the legislation of economic penalty for CO2 emission, (3) reducing the unit cost for CO2 mitigation, (4) enhancing the power of R&D activities.

Identiferoai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0629107-142833
Date29 June 2007
CreatorsChen, Chun-Da
ContributorsIuan-yuan Lu, Yi -Min Tu, Hsien-tang Tsai, Ping-Yi Chao
PublisherNSYSU
Source SetsNSYSU Electronic Thesis and Dissertation Archive
LanguageCholon
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0629107-142833
Rightsnot_available, Copyright information available at source archive

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