Decomposition and Influencing Factors of China's Energy Consumption Intensity Changes

Energy shortage has been the bottleneck of economic and social sustainable development in China.Energy Consumption Reduction has been put on the agenda of the Eleventh Five-Year Plan.It is of significance to know the change trend of energy intensity and improve energy efficiency in the process of building China into an economical society.Based on the Laspeyres index and its decomposition mode1,changes in energy intensity are analyzed.Results show that the decrease of China's energy consumption intensity from 1980 to 2007 was mainly due to improvement of industrial energy efficiency as a whole and that the decrease of industrial energy consumption intensity was the major factor lowering the whole energy intensity.Accordingly,the co-integration relation has been validated by model of VAR between the factors of technological progress and the improvement of energy efficiency.