Decoupling of environmental impacts in the iron and steel sector is still needed beyond emissions

Chaohui Li and Prajal Pradhan

Sustainable Development, 2025, vol. 33, issue 2, 1700-1713

Abstract: The iron and steel (IAS) sector forms a critical foundation of the global economy, and the successful eco‐economic decoupling of this sector has been a focus of academic inquiry. However, existing literature in decoupling analysis often adopts a “carbon tunnel vision,” that is, concentrating on carbon alone while neglecting a broader array of environmental consequences. Here, we conduct multi‐footprint accounting for the IAS sector from 2000 to 2022 for carbon, energy, water, and particulate matter dimensions, examining decoupling patterns across different regions and various footprint types. Contrary to existing literature showing the successful decoupling of the IAS sector's environmental impact with economic growth, our study highlights that the decoupling trend is only observed in carbon footprints. We find that the carbon intensity has experienced a substantial decrease in the post‐2016 period, effectively counterbalancing the growth induced by increased demand. Such a pattern is unobserved for other footprint types. This suggests that while carbon has decoupled, other environmental impacts, such as water use and particulate matter, remain closely linked to the economic activity in this sector. These findings highlight a need for achieving sustainability on a diverse scale beyond decarbonizing the IAS sector. A shift away from the “carbon tunnel vision” in scholarly inquiry and public attention is essential, as it may hinder achieving diverse sustainability goals.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:wly:sustdv:v:33:y:2025:i:2:p:1700-1713

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