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Climate change which is induced from energy consumption and CO 2 emissions has got people's attention; hence, many strategies and ways are being adopted to mitigate CO 2 emissions. Energy substitution is crucial to the promotion of energy conservation and CO 2 emissions reduction. The purpose of this paper is to estimate both inter-factor and inter-fuel substitution in China's iron & steel industry during the period 1985–2011. Empirical results show several conclusions for China's iron & steel industry: (1) own-price elasticity of energy is negative, so increase in energy price will reduce energy input; (2) energy and capital, and energy and labor are substitutes, and the substitution in energy/capital is relatively stronger; (3) though coal, oil and electricity are also substitutes, the substitution effect is not so obvious because of pricing distortions in China. The driving forces of energy efficiency change are further discussed and the results show that technology progress is the key factor determining energy intensity. Therefore, market-oriented reforms in terms of energy prices, improvement in energy substitution (including inter-factor and inter-fuel substation) and promotion of energy saving technologies are important means for ensuring future energy conservation and CO 2 emissions reduction practices in China's iron & steel sector. [ABSTRACT FROM AUTHOR]

Abstract: Due to increasing energy scarcity and pressures from climate change, Chinese iron & steel (IS) companies have struggled to implement practices to reduce their energy consumption and CO2 emissions. However, it is not clear whether these practices can improve the environmental or economic performance of these companies. The determinants that drive or hinder the implementation of these practices are also not known. Therefore, this paper describes an empirical analysis of a total of 85 questionnaires of various IS companies across China. A regression analysis was applied in this paper to verify the relationship among CO2 reduction practices, determinants and performance as reported by the IS companies. The results show that although some CO2 reduction practices can result in significant environmental performance, their impacts on the improvement of economic performance are less clear. The paper discusses some implications regarding strategies for prompting CO2 reduction practices that have been considered during the discussion about the determinants that impact on the practices. [Copyright &y& Elsevier]

The increasing energy and material consumption associated with global economic growth has resulted in the need for more severe efforts at mitigating global climate change. The iron and steel industry consumes 8% of energy and emits 7% of total CO 2 globally. China's iron and steel industry contributes to 15% of that country's total CO 2 emissions. Therefore, there is an urgent need to explore the possibility of net zero emissions in the iron and steel industry in China to meet China's goal of carbon neutrality before 2060. In the study presented in this paper, the MESSAGEix–China iron and steel model was developed by integrating the process-based technology of the sector into the IIASA's MESSAGEix framework to explore zero CO 2 emission pathways and their associated impacts on resources, energy, and water in China's iron and steel industry up to 2100. We found that there are multiple pathways to achieving zero CO 2 emissions in the Chinese iron and steel industry by the end of the 21st century. More specifically, in all the pathways developed in this study, CO 2 emissions decreased significantly between 2030 and 2060 due to the rapid application of 100% scrap-based Electric Arc Furnaces (EAFs) and hydrogen-based Direct Reduced Iron (DRI)-EAFs steel-making technologies. However, by 2060, there will still be 70–360 Mt of CO 2 emissions from China's iron and steel industry; consequently, carbon sink or negative emission technologies are required to offset this and achieve the country's carbon neutrality goal. Furthermore, technologies for achieving zero emissions differ widely in terms of their impacts on the consumption of materials and energy. Compared to the electric (ELE) scenarios, 25–40% of extra iron ore is consumed in the current and new national policy (NPS) scenarios and the DRI scenarios, but 25–220% of scrap is required. At the same time, 20–150% more energy will be saved in the ELE scenarios than in the NPS and DRI scenarios. Finally, we recommend that policy makers design a cross-cutting strategy to achieve zero CO 2 emissions and enhance efforts for material recycling and the provision of clean energy and water. • There are multiple pathways to achieving net zero emissions in China's iron and steel industry. • Steel outputs are essential for reducing CO 2 emissions and conserving materials, energy, and water. • Hydrogen-based DRI and 100% scrap-EAFs technologies are key to achieving zero emissions. • CO 2 mitigation measures have limited impacts on water consumption. [ABSTRACT FROM AUTHOR]