Decomposition analysis of electricity intensity over 1998–2007 in China

The method of logarithmic mean Divisia index (LMDI) was used to decompose changes in electricity intensity in the period of 1998-2007. The results indicate that technological change is confirmed as the dominant contributor in the decline of electricity intensity, but the contribution of technological effects fluctuated and presented approximately an inverse-U-shaped curve. The changes in industry structure, either in 6 sectors or 36 sub-sectors, raised the intensity after 2002. The reason of this was analysed. And some advices was talked about for improvement of electricity intensity.