A Circular Economy Collaborative Development Evaluation Model and Application Of
A Circular Economy Coordinated Development Evaluation Model and Application of Energy-intensive Industries with Perspective of Order ParametersAn Evaluation Model for the Coordinated Development of A Circular Economy in China and Its Application to Energy-intensive Industries
Zheng Jiliang1, Zheng Chen2, Chen Pan1, Ching Yuan Luk1
1. Faculty of Management Economics, Kunming University of Science Technology, Kunming, China, 650093
2. Zhongshan Securities Company, Beijing, China, 100044PricewaterhouseCoopers (PwC)（是否需要改）补上新的单位信息
Abstract: The energy-intensive industries (EIIs) are fundamental in industrial development in China, and they are also the key fieldindustries of circular economic construction as welleconomy infrastructure. It is worth paying attention to theThe coordinated development of a circular economy in EIIs is worth being payingid attention to owingdue to the inter-relationship among EIIs in the present day, and it. It is important for related to the optimization and improvement of comprehensive performance of circular economy. Based on the perspective of order parameter, this study uses the economic and environmental subsystems to establish an evaluation model that examines the coordinated development of a circular economy of six main energy-intensive industries (EIIs) and the EII clusters from 2006 to 2011 in China. The result shows that the level of coordinated development of circular economy among six energy-intensive industries differ and that the level of coordinated development of circular economy among the EIILL clusters lags behind that of each energy-intensive industry examined. circular economy coordinated development (CECD) is worth being paid attention in the circular economy construction of energy-intensive industries (EIIs). With two sub-systems of economic and environment, from perspective of order parameter theory, a coordinated evaluation model for energy-intensive industry is built in this paper, which is applied on the CECD evaluation of China's six main energy-intensive industries and the EIIs cluster in 2006-2011. The results demonstrate the difference of the CECD level among energy-intensive industries and the EIIs cluster, and the fact This resultIt demonstrateshowsIt also shows that the outside coordinated degree of the EIIs is lower than the inside coordinated degree coordinated degree of each energy-intensive industry.
Keywords: order parameter; coordinated degree evaluation; energy-intensive industry; circular economy
0 Instruction1 Introduction
The energy-intensive industries (EIIs) are fundamental for industrial and economic development. They haveIt has made a huge contribution to facilitating economic growth. At the same timeAt the same time, the development of the EIIs is followed by massive energy consumption and serious environmental pollution, leading to external diseconomy. The EIIs are important when establishing a circular economy. At present, the circular economy of EIIs has been gradually developed in many regions in China. However, the problems of lacking coordination and imbalanced development have become more apparent., fundamentals of Chinese economy, have made huge contributions raising economic growth. Owing to consuming a great many of energy and causing serious environmental pollution, EIIs are important when constructing circular economy. The circular economy construction of EIIs has been carried out across China, while the problem of lacking coordination or unbalanced development is gradually becoming apparent.
The EIIs clusters refer to the industries or enterprises groups which have close relationship when it comes to the supply and demand of with supply chain relationship around the supply and demand of mineral resources, which may form a kind of industrial cluster through the core enterprise’s supply chain extending based on a resource of competitive advantage [1]. The concept concept of circular economy the coordinated development of a circular economy (CECD) of EIIs was proposed in 2010 [2], which aims to study studied how wastes were treated and reused in a larger industrial network space to improve the utilization efficiency of natural resources and energy.
From a higher perspective, the competition of modern firm or industry is enteringhas entered the era of into a"network competition" era , . A firm or an industry no longer acts alonenot just the acting alone of a single firm or industry and not the competition of a supply chain no longer just competes with to another supply chain. The one, which that can organize and coordinate the relationship with other members better in a network organization, will become a real winner (Martin,2000; Jeffrey,2000).
Realizing the coordinateion development of a circular economy (CDCE) is complicated. It requires comprehensive evaluation onf the level of coordinateion development of a circular economy of EIIs and EII clusterss. The evaluation will help find out the uncoordinated situation among different EIIs. Also, Realization of the CECD is complex. It is a basic work to evaluate comprehensively the present CECD level of each EII and the EIIs cluster, which will help to find out the uncoordinated condition in the circular economic construction of EIIs, to iIt will also help provide scientific basis for improving and systematizing the process of establishing circular economic economy construction, in order to reach get the best economic, environmental and social performance. The domination principaldominating principle of synergetic theory requires catching capturing order parameters during the process of system evolution, which dominate the evolution and development of a complex system. Therefore, this study uses synergetic theory as a guidance and selects order parameters that affect the CDCE. Besides, it establishes an evaluation model for analyzing the level of the CDCE inside and outside EIIs, and with the guidance of synergetic theory, supported by available references, the order parameters affecting the CECD of EIIs are selected, a comprehensive evaluation model for the CECD of EIIs is built up, which may be used to analyze and demonstrate the CECD level and differentiation status inside and outside of EII, and to provide reference for the facilitation of balanced development of the circular economy in EIIs and in the industrial parks.
21 Concept and literatures reviewLiterature Review
2.1 Literature review on the coordinated development of circular economy of EIIs
The EIIs areis the key fields of the construction and development of circular economy at home and abroad. The concept of resource based industrial clusters or EIIs is a product of Chinese industry cluster study , while the 3R(reduce，reuse，recycle) principle camecomes from the 3R manufacturing of DuPont chemicals company in USAthe United States (U.S.). The successful case,Being cited mostly as the successful case in the theory of circular economy, Denmark Kalundborg Eeco-industrial Ppark is a sortkind of coordinated development model of EIIs cluster based on the eco-industrial chain without wastes disposal, which is. The Park is composed of the core firms of power plant, refinery, pharmaceutical factory and gypsum plate plant. In addition, the eco-industrial parks such as Brownsville, Chattanooga, Choctaw in USAthe U.S., Fort Saskatchewan, Cornwall, Becancour in Canada, and Kokubo in Japan, all are the model of coordinated development of chemical, metallurgy and building material. Many ecologically industrial national and provincial pilot parks at homein China focus on EIIs such as iron & steel, aluminum, phosphorus chemical and coal chemical to carry out the construction of circular economy and have realized a certain degree of coordinated development.
In fact, tThe CDCE of EIIs is not limited into eco-industrial parks actually. But Tthere are a lot of limitrestriction on the plan and construction of eco-industrial parks, which is still in the pilot phase withinvolving huge investment. The construction of eco-industrial parks is not a purpose but a means to explore the sustainable development of regional economy and to provide the samplean example for the CDCE of regional EIIs. It is necessary to consider the strategic development of regional EIIs byusing the case in Yunnan province (Zheng Jiliang, 2008).
There is few foreign literaturesare limited Western studies on about the CDCE of EIIs so far. Some literatures discussed this problemthe issue from the persptive of industrial symbiosis, the contents of which are similar with the idea of the eco-industrial parks construction. For example, Australia is aresource rich courtry, the scholars Van Beers , D., Corder, G., Bossikov, A., Van Berkel, R（et al. (2006, 2007）used Australia, which is a resource rich country, toin this country discussed the concept and the significance of mining industrial symbiosis, regional resource coordination and regional development coordination. Turkay et al (2004) discussed modeling and quantitative analysis on the coordination between enterprises in chemical industry.
Some representative Chinese literaturesstudies discussed the mode of the cross industry chain development with an EII as the core main focus and demonstrated its superiority. The representive literatures are as below. For example, Bao Jufang et al. (2007) induced the circular economy pattern of iron &steel industry as to build up several eco-industrial chain based on the integration of cement plant, power plant, chemical plant and polymer processing factory. Sun Jingyi, Xi Youmin et al.(2007)came to the conclusion, through the simulation on the circular economy development of a coal group, argued that , a coal firm may resist the operation risk and increase 30 per cent profit theprofitabilityof about 30% after developing the eco-indudtrial chains of coal electricity, coal aluminum, coal chemical industry and coal building material. Zhang Jianling J.L.(2012) discussed the low carbon industrial chain mode of nonferrous metal industry. Zhang F.Fang (2012) determined the order parameters of technology innovation management system evolution and the development of the resource type enterprise. Zhang J.B.Jianbin (2012) considered the S growth model and sustainable development path of resource type industrial cluster under the constraints of resource and environment. Zheng Jiliang et al.(2013) studied the CDCE mode of EIIs based on the building material industry.
In generalAfter a review of exiting literature, the CDCE mode of EIIs maycan be summarried as the following follows: (1) cCogeneration of heat and power (power generation using waste heat from the process of high temperature burning or smelting); (2) Coal, electricity, building materials co-production mode; (3) Coal, electricity, chemical integration mode; (4) Metallurgy, building materials co-production mode; (5) Chemical industry, building materials co- production mode; (6) Metallurgy, chemical industry co- production mode (Zheng Jiliang, 2010)
The industrial chains of circular economy among EIIs are increasing obviouslyexplicitly now, but. However, the mechanism to build and maintain this kind of industrial chain is still in the an initial stage. The mechanism comes mainly from the requirement of building up the industrial chains of circular economy inside a firm group, and the coordinated mechanism to build up the eco-industrial chain and network in an industrial cluster has not yet formed yet. The circular economy construction of EIIs is in the situation of lacking of coordination and uneven development, and ecoordinated technology being lagged behind as well. Thence, the hypothesis is proposed here, which is of this study is that, the coordinated degree of circular economy among EIIs (outside coordinated degree) is lowered than the inside coordinated degree in each of EII. This hypothesis will be verified empirically afterwards.
目前，国际上直接研究区域经济层面高耗能产业群循环经济协同发展的文献很少，主要是从产业共生(industrial symbiosis)的角度来阐述，其内容与生态工业园区的建设思路大体相同。例如，澳大利亚是资源大国，该国学者Van Beers, D., Corder, G., Bossikov, A., Van Berkel, R（2006，2007）对矿产业的产业共生、区域资源协同、区域发展协同的概念和意义进行了论述。Turkay等（2004）对化工行业企业间的协同进行了建模和定量分析。
2.2 Literature review on the order parameter principle and its application on coordinated development and evaluation.
The basic idea of behind Synergetic is that Synergetic is, when a complex and opened system is in an unstable state, the dominate parameters (i.e. order parameters) in it and some outside parameters will affect its subsystem to produce a synergistic or coordinated effect through nonlinear interaction., tThe old systematic structure will change on the aspects of time, space, property or function, and a new ordered structure will come to being. The domination principaldominating principle is a basic principal principle in Synergetic, the main idea of which is, each element affects the system in a different way., and tThe elements may can be divided into the fast variable and the slow variable. The fast variable attenuates quickly, which doesn’t does not play a leading role in the evolution of system. Some parameters which attenuates very slowly, but dominate and determine dominating and determining the macro order structure, status and order level of a system, which are called the slow parameters or order parameters.
In recent years, Synergetic synergetic Ttheory and Order order Parameters parameters Principal princple are widely used on in the research of coordinationed development and evaluation about an industrial system, industrial cluster system and regional system as follows.
(1) Order parameters identification and coordinated evaluation to an industry, a province, or a city, or a special system. For example, Guo Li and et al. (2005) built an industrial ecologic system evolution equation using Haken Model, and made an empirical analysis withby using samples of 21 provinces and cities in China as samples, . and tThe result demonstrates shows that environmental protection productivity, which reflects the environmental scientific and technological progress, is the order parameter in an industrial ecologic system evolution[3]. Cai Shaohong and et al. (2007) observed and studied examined the physical process and self-organization mechanism in the evolution of when regional enterprise community evolved into industrial cluster , and and argued proposed a point of view that the regional leading industry is was the order parameter of the system, which played the role of domination and leader[4]. Sun Bin and et al. (2009) proposed a point of view argued that intellectual property advantage is was the order parameter of the innovation system of an industrial cluster[5]. Klodt H. (2010) studied the order parameters and their change in a logistics system, the mechanism of logistics synergetic system, and checked the macro method of coordinateding system[6]. Chen Yiming and et al. (2010) established a compound order parameters index system of energy, economy and environment, built a model to evaluate the coordinated degree of this system, and made an empirical analysis with the example of Shandong Province[7]. Li Yanrong and et al. (2012) established an order parameters evaluation index system of industry, scientific research and higher education, built a coordinated evaluation model of the industry-university-research (IUR) innovation system, and made an empirical analysis with the example of five city of Beijing, Shanghai, Tianjian, Chongqin and Xian in China[8].
(2) Order parameters identification and coordinated or collaborated degree evaluation between industries or between an industry and an area. For example, R. Anbanandam and et al. (2011) built a model to evaluate the collaborated degree between the retail industry and manufacturing industry in India with graph theory[9]. Zhong Ming and et al., (2011) selected five order parameters to reflect the status of logistic development in a port and six order parameters to reflect the status of economic development in a city, . They built a model to evaluate the coordinated degree between the both parts, and made an empirical analysis with the example of Dalian city[10]. Zhao Ya (2011) established an order parameters index system of manufacturing industry and third party logistic industry from aspects of economy running, profit capability and industrial work, . She built a model to evaluate the coordinated degree between the both industries , and made an empirical analysis on the coordinated degree between the two industries in China[11]. Zhang Jinxiu (2012) identified seven order parameters in an automobile industry cluster and regional logistic, built a model to evaluate the coordinated degree between both industries, and made an empirical analysis with the example of Guangzhou city[12]. Tang Yan and et al. (2012) selected nine indicators of an economic system as order parameters, analyzed the order degree between resource re-production and equipment manufacturing development, calculated the coordination coefficient, built a coordinated degree model, and set up a referring standard of coordinated development [13].