| The 17th CPC National Congress has raised a strategic measure, that is to strengthen energy resource saving and environmental protection, improve the sustainable development, adhere to the basic national policy of resource saving and environmental protection, and highlight the position of building a resource saving and environmental friendly society in the industrialization and modernization strategy. The Iron and steel industry has a fundamental industry in the national economy with an important place in national economy and national defense construction. During the six decades after the founding of PRC, China's Iron and steel industry has seen a consisting development. Statistics show that, in 1949, the steel production of China was merely 158,000 ton, while the steel production in 2008 was 584 million ton. However, the Iron and steel industry is a resource intensive industry characterized by high pollution and energy and resource consumption. In the process of raw material extraction and iron and steel production, huge amount of resource and energy are consumed, producing, at the same time, incredible amounts of emissions. China is now in the middle of industrialization, a critical stage, insufficient raw materials supply, water resource, and land resource, pollution and transportation problem have become the bottlenecks in the development of Iron and steel industry, safely restricting the healthy and long-term development of the national economy.After the explosion of Subprime Mortgage Crisis in 2008, American economy slows down, affecting the global economic growth as well. Under the effect, China's exports dropped excessively. Over-dependence on external growth model is faced with considerable risks. In that case, it is very imminent to transform the economic growth mode, promote energy saving and emissions reduction in high energy consumption, high material consumption and high pollution industries and develop circular economy.In recent years, Shanxi Province have done a lot of work in energy saving and emissions reduction areas with remarkable economic and social benefits. However, as a resource-based province, Shanxi has gradually developed a industry structure dominated by heavy industries of high energy consumption. The utilization of energy is of low efficiency and development of new industries is relatively inadequate. The transformation of economic growth is very slow. At present, high level of energy consumption has become the "bottleneck" and "short board" in economic development of Shanxi Province. So the healthy, rapid and sustainable development of Shanxi's economy will be dependant on whether Shanxi, as a high energy consumption province, can transform its mode of development in iron and steel industry and reduce energy consumptions.At present, the article on the sustainable development of iron and steel industry in Shanxi is relatively few. This paper researches from the perspective of circular economy, introduces its basic theories and meaning, and refers to the advanced experiences of developing circular economy, including the example in Baoshan Iron and steel and Cao Feidian Industry Park, which form the theoretical basis of this paper. On that basis, the paper studies the circumstances of circular economy development in Shanxi's iron and steel industry. Starting from the analysis of status quo of Shanxi's iron and steel industry, the paper studies the input-output data of Shanxi's iron and steel from 2003 to 2008 through a quantitative analysis and assesses the efficiency by DEA model. Through the results of efficiency assessment, the paper proves the necessity and key points for developing circular economy in Shanxi's iron and steel industry. The above was followed by a construction of small and medium circular modes for developing circular economy in Shanxi's iron and steel industry, with Taiyuan Iron&Steel as an example. In the end, the paper elaborates on supporting systems for developing circular economy in Shanxi's iron and steel industry. |
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