Structural Decomposition Analysis of China's Industrial Energy Consumption Based on Input-Output Analysis

China is now at a stage of accelerated industrialization and urbanization, with energy-intensive industries contributing a large proportion of economic growth. In this study, we examined industrial energy consumption by decomposition analysis to describe the driving factors of energy consumption in China. Based on input-output (I-O) tables from the World Input-Output Database (WIOD) website and China's energy use data from 1995 to 2011, we studied the sectorial changes of energy efficiency during the examined period. The results showed that all industries increased their energy efficiency. Energy consumption was decomposed into three factors by the logarithmic mean Divisia index (LMDI) method. The increase in production output was the leading factor that drives up China's energy consumption. World Trade Organization accession and financial crises had great impact on the energy consumption. Based on these results, a series of energy policy suggestions for decision-makers has been proposed. (paper)