Research on the Impact of Steel Energy Conservation Technology Diffusion on Enterprises' Participation in Carbon Trading

Economic and Energy Supply & Demand Department, State Grid Energy Research Institution, Beijing, China

^* Corresponding author’s e-mail: hdzyz1102@126.com

Abstract

In the process of steel production, the use of high temperature and high pressure smelting technology, continuous casting and rolling technology, waste heat recovery technology, can effectively reduce energy consumption and reduce carbon emissions. At present, China's carbon trading only includes power generation industry, but high-intensive industries such as steel have been considered to be included in the carbon market. By the use of energy-saving technology to reduce carbon emissions, steel enterprises participate in the carbon trading market, can realize the value of carbon assets. Based on the advanced energy saving technology in the steel industry, this paper studies the influence of technology diffusion on the participation of steel enterprises in carbon trading. The results show that the stock steel mills choose the technical transformation under the loose quota allocation, and the new technology application of the incremental steel mills under the tightened quota allocation. In the early stage of the operation of the carbon market, loose quotas should be implemented to realize the technical transformation and energy efficiency improvement of the stock steel plants, and the quota can be gradually tightened with the maturity of the market operation.