Study On Machanism And Model Of Circular Economy In China’s Iron And Steel Industry

China’s iron and steel industry has made remarkable achievements since the establishment of the P.R.C.However, both energy consumption and pollution of China’s iron and steel industry are very large in the process of rapid development. The supply of resources and environmental capacity constraints have become the bottleneck of China’s iron and steel industry,and the circular economy is an effective way to solve this problem.As an ecological economy,circular economy is to maximize the efficiency of energies and resources,minimize pollutants and form an economic development model which includes ecological facilities,clean production, comprehensive utilization of resources and sustainable development.Building mechanisms and promoting model innovation are the core problems of circular economy development in China’s iron and steel industry. And they are helpful to solve the current problems like system deficiencies,lack of investment and R&D insufficient.Firstly, this paper studies the status of circular economy in China’s iron and steel industry in terms of energy consumption level, water resources utilization, waste emissions and recycling. It analyzes iron and steel industry’s circular economy development experience in Germany,Japan,the United States and South Korea,such like the roles of the government,enterprises,the public,and the measures like legal policy formulation,technology research and development,waste disposal testing and supervision.Then the paper proposes several factors that restrict the development of circular economy in China’s iron and steel industry.On the basis of status analysis, the paper builds the circular economy mechanism of China’s iron and steel industry. Supplemented by government regulation,it is a market-based mechanism.In the part of market mechanism,the paper analyzes its core mechanism-price mechanism from the resources to the products.And it estimates the cost of China’s iron and steel enterprises pollutant emissions by using the quadratic directional distance function.As a necessary supplement to the market mechanism,in the part of government regulation,the paper analyzes the role of the government and its functions.To form a long-term mechanism to promote the circular economy development of China’s iron and steel industry through the combination of market and government. On the one hand,the market mechanism make the energy conservation,emissions reduction and other environmental friendly behavior become profitable, and inspire the enthusiasm of each economic body to participate in the circular economy;On the other hand,the government should give full play to the incentive and constraint function of the policies and regulations.Then the paper uses game theory to analyze the game relations among the government,iron and steel enterprises and the public.Finally,based on the analysis of the connotation and operational mechanism of circular economy industrial chain,steel industry characteristics and development trend,this paper builds circular economy industrial chain of China’s iron and steel industry.Furthermore,according to different types,development stages and operational levels,it creates circular economy models of China’s iron and steel industry.Circular economy industrial chain is a manifestation of circular economy mechanism,and it embodies the unity of the material flow,value flow and information flow of the mechanism essentially.At the same time,around the different evolution direction of the circular economy industrial chain,it generates different models.The mechanism affects the bodies’ behavior under different models and evolution patterns of the models.