This study examines the energy efficiency in the iron & steel industry and tries to identify a possible factor contributing to the energy efficiency growth.

There are three tools for this study, which are 1) Specific Energy Consumption (SEC), 2) Cluster analysis and 3) Environment Kuznets Curve (EKC) hypothesis. This study extends the EKC hypothesis to show the energy efficiency change along the economic growth. Industry observers and policymakers are tended to cite one more possible indicator of energy efficiency in the iron & steel industry. In addition, seven-teen countries which included the main steel producing countries in E.U. and Taiwan over the period of 1970-2005, economic growth is likely to improve energy efficiency of iron & steel industry to a great extent as evidence in various industries.

The results of this study showed three types, U-shaped, linear and N-shaped. Besides, cluster analysis did not show strong relative on the ratio of BOF/EAF.

The whole study is demonstrated based on energy efficiency of iron & steel industry. Finally, this study clearly indicated that economic growth is critical in pursuit of energy efficiency in the iron & steel industry

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