Heavy Industry Sectors Research Articles

Study on the measurement and the changing trend of the energy use of China’s economic sectors: based on cross-region input-output model

The consumption of fossil energy is the major cause of environmental pollution. Effectively reducing the fossil energy use has important significance for achieving China's green development targets. The premise for reducing fossil energy use is accurately measuring the amount of energy use and identifying the key sectors and links of energy use of China's economic sectors. This paper, by establishing a cross-region input-output model, measured the amount of energy use from the perspective of embodied energy, explored the changing trend of energy use between 2002 and 2015, and identified the key sectors and links of energy use. The results show that the embodied energy intensities of China's economic sectors are generally higher than the world average level, but its changing trend is declining. Although the amount of energy use shows a growth trend, the growth rate manifests a decline process. The key sectors of energy use assemble in the resource sector and heavy industry sector. The key link is intermediate use, but about 80% of embodied energy of intermediate use has been used by downstream sectors. Approximately 76% of the embodied energy of final demand has been used by gross fixed capital formation and urban residents' consumption. China has turned from a net exporter of embodied energy to a net importer since 2012. There is a resource mismatch in China's import and export structure of embodied energy.

THE VALUE OF A TELEMETRY MONITORING SYSTEM IN SUSTAINING THE OPERATIONAL PERFORMANCE OF INDUSTRIAL INFORMATION SYSTEMS

Revolutionary advances in the information and communication technology field pave the way for automation and data exchange in the heavy industry sector. Currently, Industry 4.0 solutions are more readily accepted in factories and in more advanced economies, where good infrastructure is in place to facilitate these solutions. In the context of these heavy industries, wide-area wireless telemetry networks play an important role in facilitating accessibility and allowing for real-time monitoring and data transmission over wide geographical distances. This paper emphasises the value of a new wireless telemetry monitoring and diagnostic system that allows for the development of a detailed troubleshooting methodology when communication disruptions occur. The system was implemented on an existing telemetry system that is used by an energy services company to maintain the operational status of various remote information systems. The network is also used to facilitate various demand-side management projects throughout the Republic of South Africa. The results obtained show that the proposed system can enhance the robustness of existing Industrial Internet of Things infrastructure, and this promotes the adoption of Industry 4.0 concepts in the heavy industry sector.

Foreign-Funded Enterprises and Pollution Halo Hypothesis: A Spatial Econometric Analysis of Thirty Chinese Regions

China is one of the world’s major environmental polluters, therefore, Chinese environmental efficiency is an issue of global importance. In this study, we aim to identify economic factors affecting environmental efficiency scores in different regions of China from a spatial econometric perspective. We measure environmental efficiency scores, relative to the theoretically consistent production possibilities frontier estimated, according to a novel iterative methodology. As expected, we find that environmental efficiency scores are negatively affected by the prevalence of heavy industry sector in the economy, with a higher share of coal as a source of energy exacerbating the problem. We also find evidence that strongly support the pollution halo hypothesis, which credits foreign-funded enterprises with producing in a more environmentally-friendly way. Surprisingly, we find a negative association between the share of tertiary sectors in a regional economy and environmental efficiency—emphasizing the need to address the indirect effects produced on the environment by the seemingly innocuous sectors, such as the hotel sector. We encourage the creation of foreign-funded enterprises, and support formulating environmental protection policies that consider the indirect effects various economic sectors have on the environment.

Satellite observations of NO2 over China during the period of COVID-19

The cover image shows the Aura/OMl monthly tropospheric NO2 Vertical Column Density(VCD)data over China during the periods from January to February in 2020 and 2019,respectively.Satellite observations indicate that there are significant reductions of both NO2 emission and industrial energy consumption in February 2020,compared to those of both January 2020 and February 2019.With the abatement of COVID-19 in China,although many industrial factories started to re-open,production capacities of most industries were limited,and were still not yet fully resumed.The satellite remote sensing technology can provide a new view to quantify the status of industrial activities and public travel,which monitors variations of the heat emission from heavy industrial sectors with high-energy consurming and the atmospheric NO2 mainly from industrial emissions and vehicles.For more details,please see the research progress"Satllite observations of the return-to-work over China during the period of COVID-19"in volume 24,issue 7(page 824-836).

The optimization of regional industrial structure under the water-energy constraint: A case study on Hebei Province in China

Because of the rapid development of the economy, the shortages of water and energy in northern China have reached crisis levels. Solving the contradiction between economic development and resource constraint is a significant problem in China. Based on the 2000–2017 panel data of Hebei Province, a significant arid and semi-arid region in the north of China, this paper tries to create a valid path to resolve water-energy problems by calculating the growth driving factors of the industrial water-energy with LMDI Model, then plans the internal structure of the industrial sector through the linear programming model. The results show: (1) The seeking of the growth of gross domestic product (GDP) is the essential factor that promotes the increasing of water-energy crises; while, industrial sectors' structural adjustments will boost efficiency and performance of water and energy. (2) The primary industry in Hebei province plays the main key to energy conservation; meanwhile, reducing the proportion of crops with high water consumption is an excellent way to alleviate the shortage of water resources. (3) Manufacturing sectors’ structural adjustments, especially reducing the proportion of heavy industry sectors, will provide an essential means to foster water-energy efficiency; at the same time, increasing the proportion of tertiary industry can well balance the relationship between economic growth and water energy utilization. Finally, this paper provides a possible path for the optimization and adjustment of industrial-economic restructuring through emphasizing sustainable solutions of industrial-economic interactions under the situation of water-energy constraint in Hebei province.

Variation of industrial air pollution emissions based on VIIRS thermal anomaly data

The Beijing-Tianjin-Hebei (BTH) region is the largest industrial cluster in northern China and its most prominent air pollution zone. Industrial emissions of PM2.5, SO2, NOx and other pollutants have a significant impact on regional air quality. Monitoring industrial pollution emissions is of great significance for the prevention and control of air pollution. The VIIRS Nightfire products can detect thermal anomalies in heavy industrial sectors, thus providing a new means for monitoring industrial activities. In this study, the VIIRS 375 product was selected to study the spatial and temporal changes of the heavy industrial thermal anomalies through spatial analysis and mathematical statistics methods. Furthermore, it is the first time to use thermal anomaly radiative power (CTRP) to evaluate the spatiotemporal pattern of industrial pollution emissions and its impact on air quality in the BTH region. We observed that the spatial distribution of CTRP was unbalanced and that Tangshan-Tianjin and Handan-Xingtai- Shijiazhuang were found to be high-density pollution areas. The CTRP in Tangshan and Handan were higher than in other cities, accounting for 72.41% of their area. From 2012 to 2018, CTRP in this region decreased by 17.2% per year while in Langfang decreased by 72.9% per year. The CTRP also showed a significantly positive correlation with industrial energy consumption. Emissions of SO2, NO2, and PM2.5 were high in the area of intense distribution of thermal anomalies. When compared to the density of tropospheric NO2 and SO2 columns and the monitored concentrations of SO2 and PM2.5, CTRP was consistent with the trend of interannual variations and spatial distributions. The energy-saving and emissions reduction measures taken by the industrial sector in the BTH contributed significantly to improving regional air quality. Remote sensing-based monitoring can provide regional industrial energy consumption in real-time and reflect pollution emissions, providing a basis for industrial pollution emissions regulation and reduction policy.

Convergence analysis of China's energy intensity at the industrial sector level.

China's industrial energy consumption accounted for approximately 70% of national energy demand in the past four decades. Regarding energy demand and environmental pollution, success in controlling energy demand and reducing energy intensity for industrial sectors in China would play a crucial role for the country's sustainable growth problems. To formulate targeted energy plans, the features and characters of China's industrial energy intensity should be carefully evaluated. In this study, a carefully designed econometric model that considers different technological factors including indigenous R&D and technology spillovers from foreign direct investment and trade under a united framework is applied to investigate the β-convergence characteristics for China's industrial energy intensity by employing a panel dataset covering China's 34 industrial sectors over 2000-2010. The results verify the existence of β-convergence in industrial energy intensity during the sample period. For the industrial sectors overall and the light industrial sectors, the empirical results indicate that indigenous R&D and technology spillovers from FDI and imports are beneficial in curbing energy intensity. However, technology spillover through exports makes it harder to reduce energy intensity. In addition, not all technological factors have played a significant role in reducing energy intensity for the heavy industrial sectors.

Alçı Fabrikasında Gürültü Maruziyetinin İş Güvenliği Açısından Değerlendirilmesi

Noise is one of the major physical risk factors for workers in the heavy industrial sector. Within the context of this study, the environments in which employees are located in a gypsum plant were determined, noise measurements were made according to the work they performed, the results were evaluated and frequency-noise relationships were revealed. According to this, while the highest noise was found in the crusher unit, administrative building personnel were exposed to the lowest level of noise. The regions exceeding the exposure limit value are packaging and stone crushing units. In the measured areas, the maximum noise levels exposed by the workers correspond to the medium frequency range and the minimum noise levels correspond to the low and high frequency ranges. The maximum noise level to which workers in all branches are exposed is in the frequency range of 250 Hz and 2500 Hz. The noise levels generated by the machines are in the wide frequency range, and the maximum sounds from the noise sources in the factory are defined as thin sound. As a result of the measurements made, it was calculated that the maximum noise levels, which are mostly exposed by the factory staff, are outside the frequency range where the human ear is most sensitive.

Inter-Sectoral Linkage and External Trade Analysis for Virtual Water and Embodied Carbon Emissions in China

In the globalized world, water utilization and carbon emissions are two important indicators for water and energy resources evaluation. This paper investigates the inter-sectoral linkage and external trade of virtual water (water embodied in products) and embodied carbon emissions in China based on input–output tables during 1997–2015. Results indicate that: inside China, agriculture, the electric and water industry are major virtual water suppliers, while heavy industrial sectors including the metal products industry, the petrochemical industry, other nonmetallic mineral products industry, and the mining industry are major embodied carbon emissions suppliers. China is the net exporter of virtual water (137.15 × 109 m3) and embodied carbon emissions (16.05 × 108 t). From the perspective of industrial chain, about 81% of virtual water export come from agriculture, the electric and water industry ultimately, and about 85% of embodied carbon emissions export come from the mining industry, the petrochemical industry, other nonmetallic mineral products industry, the metal products industry, and the electric and water industry ultimately.

Energy efficiency in China's industry sectors: A non-parametric production frontier approach analysis

There is increasing recognition of the importance of energy productivity in China due to the considerable growth in industrial energy consumption in the past several decades. Energy productivity improvements should be approached through changes in factors such as efficiency, technology use and factor substitution. Thus, the aim of this study is to decompose the energy productivity rate of change in a non-parametric framework. We combine data envelopment analysis (DEA) and the Malmquist index, using a data set of 35 two-digit industries in China from 1998 to 2011. The conclusions highlight three key points. First, the dynamic DEA reveals that technical progress is the primary source of energy productivity improvement. Technical efficiency plays a promoting role. The contribution from factor substitution is the least. Second, regarding change, from 1998 to 2003, the positive effect of technology progress was very prominent; however, technological efficiency played a small role and may have even impeded progress. From 2007 to 2010, technology progress had insufficient power; however, the role of efficiency improvement was obvious. The dynamic changes between technology progress and efficiency improvement result in a wide range of technological innovations and efficiency improvements in the entire industry. Third, factor substitution has a prominent positive contribution in light industrial sectors but hinders the improvement of energy productivity in heavy industrial sectors. The most efficient industry is telecommunications equipment, computer and other electronic equipment. This study concludes that China should raise the relative cost of energy consumption and optimize energy allocations and other production factors.

Peran Resiliensi dan Iklim Organisasi terhadap Work Engagement

The uncertain state of the mining industry has impacts to the declining of thedemand for the heavy equipment industry sector. One of the effort to keep the companysurvive to face the challenge is improving the quality of production. This essential effort can beachieved by enhancing work engagement. This study aims to determine the role of resilienceand organizational climate on work engagement. The hypothesis of this study was: resilienceand organizational climat simultaneously predict the work engagement. The subjects for thisresearch were 63 employees in PT. Komatsu Indonesia. The instrument in collecting the datawas a questionnaire. The result of the multiple regression shows that this study’s hypothesis isrejected. Resilience and organizational climate cannot simultaneously predict the workengagement. Resilience can significantly predict work engagement by p=0.004 (p<0.05), butorganizational climate cannot significantly predict it as seen in p=0.235 (p>0.05).

Factor market distortion correction, resource reallocation and potential productivity gains: An empirical study on China's heavy industry sector

In this study, we develop a novel analysis framework for evaluating the effects of resource reallocation from the correction of factor market distortion (FMD) on total factor productivity (TFP) gains. We first measure FMD in China's heavy industry sector from 1995 to 2012, and then investigate the effects of resource reallocation from FMD correction by using the price elasticity of factor demands as a link, along with its potential TFP gains. The results indicate that: (1) Taking the price of capital as a reference, the prices of labour and energy in the study period were relatively higher to different extents. (2) If current FMD were fully corrected, the labour input in China's heavy industry sector would increase by 25.37%, whereas capital and energy inputs would decrease by 18.51% and 10.57%, respectively. (3) The resource reallocation effects resulting from current FMD correction will bring about significant TFP improvement (by 8.55%) in China's heavy industry sector, and there are evident industrial differences and stage characteristics for these promoting effects.

Network analysis of Chinese provincial economies

Global economic system is a huge network formed by national subnetworks that contains the provincial networks. As the second largest world economy, China has “too big to fail” impact on the interconnected global economy. Detecting the critical sectors and vital linkages inside Chinese economic network is meaningful for understanding the origin of this Chinese impact. Different from tradition network research at national level, this paper focuses on the provincial networks and inter-provincial network. Using Chinese inter-regional input–output table to construct 30 provincial input–output networks and one inter-provincial input–output network, we identify central sectors and vital linkages, as well as analyze economic structure similarity. Results show that (1) Communication Devices sector in Guangdong and that in Jiangsu, Transportation and Storage sector in Shanghai play critical roles in Chinese economy. (2) Advanced manufactures and services industry occupy the central positions in eastern provincial economies, while Construction sector, Heavy industry, and Wholesale and Retail Trades sector are influential in middle and western provinces. (3) The critical monetary flow paths in Chinese economy are Communication Devices sector to Communication Devices sector in Guangdong, Metals Mining sector to Iron and Steel Smelting sector in Henan, Communication Devices sector to Communication Devices sector in Jiangsu, as well as Petroleum Mining sector in Heilongjiang to Petroleum Processing sector in Liaoning. (4) Collective influence results suggest that Finance sector, Transportation and Storage sector, Production of Electricity and Heat sector, and Rubber and Plastics sector in Hainan are strategic influencers, despite being weakly connected. These sectors and input–output relations are worthy of close attention for monitoring Chinese economy.

Co-benefit of carbon mitigation on resource use in China

On one hand, natural resources and energy provide the basis for life on earth, but waste and emissions are produced during their throughput on the other hand. China, as the most populous country and an emerging economic powerhouse, has taken on the challenge of hitting peak carbon dioxide (CO2) emissions by 2030. Pursuing resource co-benefits from carbon mitigation is an effective approach for China on the road to achieving the 2030 goal. In this study, we combine the computable general equilibrium (CGE) model and the economy-wide material flow accounts or analysis (EW-MFA) method to estimate China's future CO2 emissions and resource consumption, and their co-benefit effect. Three scenarios are analyzed: business as usual (BaU), nationally determined contributions (NDC), and the scenario of achieving the 2-degree target (2deg). We find that both the NDC and 2deg targets can be achieved by 2030 without a significant compromise in economic growth. With the effect of carbon mitigation, China's resource consumption would rise by a factor of 1.7 (BaU), 1.6 (NDC), and 1.5 (2deg) during 2012–2030, and the reduction in co-benefits of metal ores, nonmetallic minerals, and fossil fuels would be 0.6 billion tons and 1.4 billion tons, 0.8 billion tons and 2.0 billion tons, and 2.6 billion tons and 4.6 billion tons for NDC and 2deg, respectively. Sectoral disparity indicates that sectors with high emissions and resource consumption include traditional heavy industrial sectors and energy-related sectors, for which additional mitigation policies should be employed, not only because they offer the most co-benefit effects, but they also have the least cost.

The impact of intercontinental air accessibility on local economies: Evidence from the de-hubbing of malpensa airport

An increasing body of literature has found a positive and significant impact of airport activities on local economies. However, it is not clear whether this effect is driven by demand factors (passengers arriving and departing with their expenditure) or supply factors (accessibility provision for local firms). By considering the 2008 de-hubbing of Malpensa Airport as a natural experiment, we estimate the impact of a reduction in flight network connectivity on employment in the travel to work areas of Lombardia, Piemonte, Liguria and Emilia Romagna. The de-hubbing decision, in fact, permanently affected the intercontinental accessibility of the airport, with only a temporary effect in terms of passengers. We found that areas characterized by export-oriented sectors suffered from contraction in the degree of connectivity, which decreased as an effect, along with distance from the airport. No effect was found in urban areas and areas characterized by heavy industry sectors.

Revitalizing China’s Economy by Improved Corporate Governance and State-Owned Enterprise Reforms

With persisting slower growth worldwide and in China, over-capacity in some heavy industry sectors, declining profitability, and intensifying competition from other, lower-cost emerging economies, corporate behavior in China needs to change and focus more on efficiency and sustainability. A larger proportion of firms, including state-owned enterprises, should improve corporate governance practices. To this end, fraudulent corporate practices must be halted and State assets need to be better managed. Reforms are under way or envisaged that will help improve corporate performance and, more broadly, deliver more resilient and environmentally sustainable growth and continuing progress in living standards.

한국과 일본 화학산업에서 사업 포트폴리오와 R&D가 경영성과에 미치는 영향

The Korean chemical industry has been one of the heavy industrial sectors to boost Korean economy during the past three decades. In the early 2010s, the Korean chemical firms faced significant challenges due to global overcapacity and rising competition from China and Middle East countries. The current downturn of Korean chemical industry comes from internal factors on strategic choice, not from global business cycle. In September of 2016, Ministry of Trade, Industry and Energy recommended the necessity of cutting the production of four items - Terephthalic acid(TPA), polystyrene(PS), synthetic rubber(SBR) and PVC. Meanwhile, in 1959, Japan, known as the Triad with the US and Western Europe controlled the global chemical industry. However, by the 1990s, with the emergence and growth of companies based in Korea, Taiwan and China, Japan struggled through a lost decade that continued into the 2000s. Although Japanese chemical companies have lagged behind companies in the West in adjusting to new business realities, many companies have already taken significant steps to increase their competitive advantage through restructuring, consolidation and new research. Industry level change inevitably requires a company to fundamentally rethink its strategy and business model. What is the value strategy for the Korean chemical firms to sustain their competitive advantages under uncertainty associated with a strategic infection point (SIP)? A SIP is a critical period during which major threats as well as new opportunities come about. This paper addresses this key question by examining the following issues. Firstly, our study diagnoses whether the current chemical industry in Korea and Japan confronts a SIP on the basis of adapted seven forces model consisting of market forces - the five forces framework of traditional industry analysis and complementors - as well as nonmarket forces associated with technology and government regulation. Secondly, we examine the different adaptation strategies between the most profitable and non-profitable chemical companies in Korea and Japan in light of segment portfolio and R&D using case studies. Lastly, we conduct an empirical study to classify Korean and Japanese chemical companies into three groups by application of cluster analysis. Segment portfolio and R&D are of interest as independent variables because they have been linked to value creation, whereas operating income, as a dependent variable is an external signal to indicate each firm`s financial performance. The data set used in descriptive statistics and cluster analysis comes from DART (Data Analysis, Retrieval and Transfer System) and annual reports of 44 Korean and Japanese chemical firms from 2000 to 2016. Our results show that there exists a significant gap of operating income among three groups, i.e. a high performance group makes known by diversifying segment portfolio into high value-added specialty materials with strong R&D capability. This group consists of most Japanese firms specialized in chemical materials. However, no Korean firm was found there. Our findings suggest that Korean chemical firms are called for in the process of strategic transformation to improve portfolio with value-added specialty by enhancing in-house R&D capability and acquiring specialty business. In order to step out of the pending crisis, Korean chemical companies should shift their growth strategy paradigm in the global market. A SIP signals the timing to change. Transformation involves rapidly and radically changing each firm`s strategy. A key task of top management is to recognize ambiguous and conflicting signals of a SIP, adapt to a new business model and develop new value strategy. Their new resolve must be followed by changes in resource allocation. It is expected that this study can be applied to other heavy industries, e.g. shipbuilding, automobile and steel that underpinned Korea`s past growth.

The green efficiency of industrial sectors in China: A comparative analysis based on sectoral and supply-chain quantifications

Industry is a main energy consumer and environmental polluter in modern society. The performance of China’s industrial development should therefore be integratively measured in economic, environmental as well as energy and resource contexts. This study employs the directional slacks-based inefficiency model to calculate sectoral and supply-chain green efficiency (SGE and SCGE respectively) of 37 industry sectors in China. Energy and water consumption are selected as the model inputs. Output considerations include value-added (desirable output), and SO2, NOx and CO2 emissions (undesirable outputs). Sectoral statistics data are used to calculate SGE while an input-output (I-O) analysis model, using China’s 2012 economy benchmark data, is employed to quantify SCGE. Furthermore, the sectors that significantly contribute indirect energy consumption to China’s industrial system are identified, and determinants of their SCGE are analyzed using the Tobit model. Results show that light industrial sectors present higher SGE but lower SCGE compared to that of heavy industrial sectors. Environmental regulation and independent innovation capacity promote industrial sectors’ SCGE, while capital-labor ratio and foreign direct investment exert inhibiting effects. Based on model results, policy suggestions are presented to advance green industry transition in China.

Correlation between molecular features and electrochemical properties using an artificial neural network

The increasing demand for environmentally-friendly and non-toxic coating systems from the aerospace and heavy industry sectors is driving innovation in corrosion inhibitor design and functional coating development. A fundamental understanding of how molecular structure and functionality influences the electrochemical responses of inhibited coatings is crucial for the design of effective functional coatings to replace stalwart, yet highly toxic industrial solutions. In this paper, an artificial neural network approach is presented to quantitatively study the relationship between the structural/molecular features of inhibitor compounds and their experimentally measured electrochemical properties. The presented method is applied to correlate molecular features of corrosion inhibitors with experimentally obtained corrosion potential (Ecorr), corrosion current (Icorr) and anodic/cathodic Tafel slopes. The neural network model, trained through an automatic optimization process, was able to predict the electrochemical performance for a given inhibitor molecule candidate. We will demonstrate how it can be utilised to assess the impact of molecular structure on the final effectiveness of the candidate corrosion inhibitor molecule. The presented neural network learning method could be applied to other areas in materials science for accelerating general materials discovery and functional coating design.

Understanding energy systems change in Canada: 1. Decomposition of total energy intensity

Between 1995 and 2010, the total energy intensity (E/GDP, PJ/Gross Domestic Product in 2002$) of the Canadian economy declined by 23% or −2.64MJ/$. To understand why, the Logarithmic Mean Divisia Index (LMD-I) method was used to decompose a large body of government statistical data supporting the observed E/GDP decline. The analysis shows that (a) 48% (1.27MJ/$) of the decline was associated with an inter-sector structural change in the economy (i.e. an increased contribution to the total GDP of the low energy-using commercial and institutional sector compared with the high energy-using manufacturing and heavy industry sectors); (b) 24% (0.62MJ/$) was attributed to the impact of the Canadian GDP growing faster than population; (c) 22% (0.58MJ/$) of the decline was associated with an overall decrease in business energy intensity. A deeper analysis of business sectors shows a positive impact of 0.4MJ/$ from increased energy intensity in the oil and gas sector, offset by a 0.98MJ/$ decline due to energy intensity declines in the other business sectors; (d) 6.3% (0.17MJ/$) of the decline was associated with an improvement in the energy intensity of households, mostly from residential energy use rather than personal transportation energy use. These results provide insights for policy makers regarding those aspects of the Canadian economy that contribute to, or work against, efforts to transform energy systems toward sustainability.