Evaluation of the Influencing Factors of Energy Consumption in China’s Energy-Intensive Industries
Publication: Journal of Energy Engineering
Volume 143, Issue 5
Abstract
This manuscript aimed to seek influencing factors of energy consumption in China’s energy-intensive industries employing the generalized logarithmic mean Divisia index (LMDI) and input-output analysis. The research stated clearly that decomposition factors covered energy structure, energy intensity, industry structure, complete demand, final demand structure, and final demand total effect. The results showed that the decrease of energy consumption in energy-intensive industries heavily relied on energy intensity and industry structure. However, final demand total effect, which specifically involved the investment demand and export expansion, was a dominant element driving energy consumption growth. Accordingly, speeding up the industrial structure adjustment, improving the import and export mix, and reducing energy intensity have been the primary approaches to decrease energy consumption in energy-intensive industries. These approaches would accelerate the target of a 16% decline in energy intensity compared with 2010 in China’s Twelfth Five-Year Plan. Moreover, this research has crucial theoretical and practical significance on the implementation of energy policy in China.
Get full access to this article
View all available purchase options and get full access to this article.
Acknowledgments
All the authors contributed to this work. Wei Li contributed to the conceptual approach and provided important comments on the modeling and analysis. Yabo Shen designed the study, performed the analysis, and wrote the first draft of the paper. Huixia Zhang contributed to developing the mathematical model and thoroughly revised the paper. This study is supported by the National Social Science Foundation of China (NSSFC) (Grant No. 15BGL145), the National Natural Science Foundation of China (NSFC) (Grant No. 71471061), the Fundamental Research Funds for the Central Universities (No. 2015ZD33), and Philosophy and Social Science Research Base of Hebei Province.
Disclaimer
The authors declare that there are no conflicts of interest regarding the publication of this paper.
References
Ang, B. W. (2004). “Decomposition analysis for policy making in energy: Which is the preferred method?” Energy Policy, 32(9), 1131–1139.
Ang, B. W. (2005). “The LMDI approach to decomposition analysis: A practical guide.” Energy Policy, 33(7), 867–871.
Ang, B. W., and Liu, F. L. (2001). “A new energy decomposition method: Perfect in decomposition and consistent in aggregation.” Energy, 26(6), 537–548.
Ang, B. W., and Zhang, F. Q. (1999). “Inter-regional comparisons of energy-related CO2 emissions using the decomposition technique.” Energy, 24(4), 297–305.
Ang, B. W., and Zhang, F. Q. (2000). “A survey of index decomposition analysis in energy and environmental studies.” Energy, 25(12), 1149–1176.
Ang, B. W., Zhang, F. Q., and Choi, K. H. (1998). “Factorizing changes in energy and environmental indicators through decomposition.” Energy, 23(6), 489–495.
Bordigoni, M., Hita, A., and Le Blanc, G. (2012). “Role of embodied energy in the European manufacturing industry: Application to short-term impacts of a carbon tax.” Energy Policy, 43(4), 335–350.
Brizga, J., Feng, K. S., and Hubacek, K. (2013). “Drivers of emissions in the former Soviet Union: A country level IPAT analysis from 1990 to 2010.” Energy, 59(9), 743–753.
Chen, Z. M., and Chen, G. Q. (2011). “An overview of energy consumption of the globalized world economy.” Energy Policy, 39(10), 5920–5928.
China State Council. (2013). “Energy development regulation and plan in 12th five-year plan.” People’s Republic of China.
Choi, K. H., and Ang, B. W. (2001). “A time series analysis of energy-related carbon emissions in Korea.” Energy Policy, 29(13), 1155–1161.
Chong, C. H., Ma, L. W., Li, Z., Ni, W. D., and Song, S. Z. (2015). “Logarithmic mean Divisia index (LMDI) decomposition of coal consumption in China based on the energy allocation diagram of coal flows.” Energy, 85(6), 366–378.
Chontanawat, J., Wiboonchutikula, P., and Buddhivanich, A. (2014). “Decomposition analysis of the change of energy intensity of manufacturing industries in Thailand.” Energy, 77(12), 171–182.
Dietzenbacher, E., and Los, B. (1998). “Structural decomposition techniques: Sense and sensitivity.” Econ. Syst. Res., 10(4), 307–324.
Ehrlich, P. R., and Holdren, J. P. (1971). “Impact of population growth.” Science, 171(5), 1212–1217.
Ehrlich, P. R., and Holdren, J. P. (1972). “One-dimensional economy.” Bull At Sci, 28(3), 16–20.
Fan, Y., Liu, L. C., Wu, G., Tsai, H. T., and Wei, Y. M. (2007). “Changes in carbon intensity in China: Empirical findings from 1980-2003.” Ecol. Econ., 62(3), 683–691.
Fernandez Gonzalez, P., Landajo, M., and Presno, M. J. (2013). “The Divisia real energy intensity indices: Evolution and attribution of percent changes in 20 European countries from 1995 to 2010.” Energy, 58(9), 340–349.
Fernández González, P., Landajo, M., and Presno, M. J. (2014). “Tracking European Union emissions through LMDI (logarithmic-mean Divisia index) decomposition. The activity revaluation approach.” Energy, 73(8), 741–750.
Gowdy, J. M. (1992). “Labour productivity and energy intensity in Australia 1974-87: An input-output analysis.” Energy Econ., 14(1), 43–48.
Guan, D., Hubacek, K., Weber, C. L., Peters, G. P., and Reiner, D. M. (2008). “The drivers of Chinese CO2 emissions from 1980 to 2030.” Global Environ. Change-Human Policy Dimensions, 18(4), 626–634.
IPCC (Intergovernmental Panel on Climate Change). (1999). “Intergovernmental Panel on Climate Change guidelines for national greenhouse gas inventories, OECD.” Paris.
Leontief, W. (1936). “Quantitative input-output relations in the economic system of the U.S. review of economies and statistics.” Rev. Econ. Stat., 18(2), 105–125.
Liang, Q. M., Fan, Y., and Wei, Y. M. (2007). “Multi-regional input-output model for regional energy requirements and CO2 emissions in China.” Energy Policy, 35(3), 1685–1700.
Liang, S., and Zhang, T. (2011). “What is driving CO2 emissions in a typical manufacturing center of South China? The case of Jiangsu Province.” Energy Policy, 39(11), 7078–7083.
Liu, H. T., Guo, J. E., Qian, D., and Xi, Y. M. (2009). “Comprehensive evaluation of household indirect energy consumption and impact of alternative energy policies in China by input-output analysis.” Energy Policy, 37(8), 3194–3204.
Liu, H. T., Polenske, K. R., Guilhoto, J. J. M., and Xi, Y. M. (2014). “Direct and indirect energy use in China and the United States.” Energy, 71(7), 414–420.
Llop, M. (2008). “Economic impact of alternative water policy scenarios in the Spanish production system: An input-output analysis.” Ecol. Econ., 68(1), 288–294.
National Bureau of Statistics of the People’s Republic of China. (2013). “Statistical yearbook of the People’s Republic of China, 2013.” ⟨http://www.stats.gov.cn/tjsj/Ndsj/2013/indexch.htm⟩ (Mar. 15, 2016).
National Bureau of Statistics of the People’s Republic of China. (2014). “Statistical yearbook of the People’s Republic of China, 2014.” ⟨http://www.stats.gov.cn/tjsj/Ndsj/2014/indexch.htm⟩ (Mar. 15, 2016).
National Bureau of Statistics of the People’s Republic of China. (2015). “Statistical yearbook of the People’s Republic of China, 2015.” ⟨http://www.stats.gov.cn/tjsj/Ndsj/2015/indexch.htm⟩ (Mar. 15, 2016).
National Development and Reform Commission. (2015) “Strengthen the response to climate change action—China’s national independent contribution.” ⟨http://news.xinhuanet.com/2015-06/30/c_1115774759.htm⟩ (Aug. 31, 2015).
NBSC (National Bureau of Statistics of China). (1999). China 1997 input–output table, China Statistics Press, Beijing.
NBSC (National Bureau of Statistics of China). (2006). China 2002 input–output table, China Statistics Press, Beijing.
NBSC (National Bureau of Statistics of China). (2010). China 2007 input–output table, China Statistics Press, Beijing.
NBSC (National Bureau of Statistics of China). (2015). China 2012 input–output table, China Statistics Press, Beijing.
Peters, G. P., Weber, C. L., Guan, D., and Hubacek, K. (2007). “China’s growing CO2 emissions: a race between increasing consumption and efficiency gains.” Environ. Sci. Technol., 41(17), 5939–5944.
Shrestha, R. M., and Timilsina, G. R. (1996). “Factors affecting CO2 intensities of power sector in Asia: A divisia decomposition analysis.” Energy Econ., 18(4), 283–293.
Su, B., and Ang, B. W. (2012). “Structural decomposition analysis applied to energy and emissions: Some methodological developments.” Energy Econ., 34(1), 177–188.
Sun, J. W. (2000). “An analysis of the difference in CO2 emission intensity between Finland and Sweden.” Energy, 25(11), 1139–1146.
Sun, J. W., and Ang, B. W. (2000). “Some properties of an exact energy decomposition model.” Energy, 25(12), 1177–1188.
Tang, X., Snowden, S., and Höök, M. (2013). “Analysis of energy embodied in the international trade of UK.” Energy Policy, 57(6), 418–428.
Tang, X., Zhang, B., Feng, L. Y., Masri, M., and Honarvar, A. (2011). “Economic impacts and challenges of China’s petroleum industry: An input-output analysis.” Energy, 36(5), 2905–2911.
Tapio, P. (2005) “Towards a theory of decoupling: degrees of decoupling in the EU and the case of road traffic in Finland between 1970 and 2001.” J. Transp. Policy, 12, 137–151.
Torvanger, A. (1991). “Manufacturing sector carbon dioxide emissions in nine OECD countries: 1973-1987.” Energy Econ., 13(3), 168–186.
Tunç, G. I., Türüt-Aşık, S., and Akbostancı, E. (2009). “A decomposition analysis of CO2 emissions from energy use: Turkish case.” Energy Policy, 37(11), 4689–4699.
Wang, C., Chen, J., and Zou, J. (2005). “Decomposition of energy-related CO2 emission in China: 1957-2000.” Energy, 30(1), 73–83.
Wang, C., Liao, H., Pan, S. Y., Zhao, L. T., and Wei, Y. M. (2014a). “The fluctuations of China’s energy intensity: Biased technical change.” Appl. Energy, 135(12), 407–414.
Wang, W., Liu, X., Zhang, M., and Song, X. (2014b). “Using a new generalized LMDI (logarithmic mean Divisia index) method to analyze China’s energy consumption.” Energy, 67(4), 617–622.
Wang, Z. H., and Yang, L. (2015). “Delinking indicators on regional industry development and carbon emissions: Beijing–Tianjin–Hebei economic band case.” Ecol. Indic., 48(1), 41–48.
Wood, R. (2009). “Structural decomposition analysis of Australia’s greenhouse gas emissions.” Energy Policy, 37(11), 4943–4948.
Wu, R. H., and Chen, C. Y. (1990). “On the application of input-output analysis to energy issues.” Energy Econ., 12(1), 71–76.
Zhang, Y. (2009). “Structural decomposition analysis of sources of decarbonizing economic development in China; 1992–2006.” Ecol. Econ., 68(8), 2399–2405.
Zhang, Y. J., and Da, Y. B. (2013). “Decomposing the changes of energy-related carbon emissions in China: Evidence from the PDA approach.” Nat. Hazards, 69(2), 1109–1122.
Information & Authors
Information
Published In
Journal of Energy Engineering
Volume 143 • Issue 5 • October 2017
Copyright
©2017 American Society of Civil Engineers.
History
Received: Apr 11, 2016
Accepted: Dec 1, 2016
Published online: Mar 13, 2017
Discussion open until: Aug 13, 2017
Published in print: Oct 1, 2017
Authors
Metrics & Citations
Metrics
Citations
Download citation
If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.