Date of This Version
11-7-2025
Abstract
This study provides the first global, plant-level analysis of technical and environmental efficiency in steel production using data from 143 mills across 50 countries (2019–2023). Using a Stochastic Directional Distance Function, we estimate plants’ distance to the frontier and compute shadow prices of CO2e emissions. Results show efficient electric arc furnace mini-mills, common in North America, face high abatement costs and low inefficiency. Conversely, integrated plants in developing countries are inefficient but can abate cheaply, with Europe in between. Shadow prices remain well below carbon market rates, underscoring the need for tailored climate policies.
Recommended Citation
Benini, Giacomo; Enstad, Erik; Mersha, Amare Alemaye; and Rossini, Luca, "Shadow Price Signals in the Steel Sector: From Efficiency Gaps to Policy Maps" (November 07, 2025). Fondazione Eni Enrico Mattei Working Papers. Paper 1480.
https://services.bepress.com/feem/paper1480