The steel industry: A mathematical model under environmental regulations

R. Riccardi, F. Bonenti, E. Allevi, C. Avanzi and A. Gnudi

European Journal of Operational Research, 2015, vol. 242, issue 3, 1017-1027

Abstract: In this work, a spatial equilibrium problem is formulated for analyzing the impact of the application of the EU-ETS on the steel industry that has historically seen Europe as one of its major producers. The developed model allows us to simultaneously represent the interactions of several market players, to endogenously determine output and steel prices and to analyze the investment in the Carbon Capture and Storage (CCS) technology. In addition, the proposed model supports the evaluation of the CO2 emission costs on the basis of Directive 2009/29/EC, the “20-20-20” targets, and the Energy Roadmap 2050. In this light, two main processes for steelmaking have to be considered: integrated mills (BOF) and Electric Arc Furnace (EAF) in minimills.

Keywords: Generalized Nash Equilibrium Problem (GNEP); Steel sector; Carbon Capture and Storage (CCS); EU-ETS (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:242:y:2015:i:3:p:1017-1027

DOI: 10.1016/j.ejor.2014.10.057

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