A programming model for industrial energy conservation policy

The paper describes the use of a process optimization characterization of the U.S. Iron and Steel Industry to determine the optimal mix of ‘Technology Push’ and ‘Policy Pul’ strategies to encourage energy conservation. Major results are: (a) Technology Push strategies are complicated by the fact that R&D projects can be either too good or too bad to warrant government support, (b) Policy Pull strategies which are self financing (i.e., investment tax credits for conservation equipment being financed by Btu taxes) tend to dominate pure tax or subsidy policies taken alone.