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The steel industry: a mathematical model under environmental regulations. (English) Zbl 1341.90086
Summary: 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 CO\(_2\) 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.

MSC:
90B90 Case-oriented studies in operations research
91B74 Economic models of real-world systems (e.g., electricity markets, etc.)
91B26 Auctions, bargaining, bidding and selling, and other market models
91B76 Environmental economics (natural resource models, harvesting, pollution, etc.)
Software:
PATH Solver
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References:
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