The research of China industrial electricity consumption based on LMDI

Based on economic background, the paper introduces a relatively reasonable decomposition method - logarithmic mean Divisia index (LMDI), and decomposes the electricity consumption of industry from 1994 to 2006 into three parts: production effect, structure effect, intensity effect with the LMDI method in order to find out the effect to the electricity consumption. According to the calculation based on the production value without the effect of price and the electricity consumption of industry sub-sectors, the paper finds that the increase in electricity efficiency within industry is more important, and furthermore the paper proposes the government to establish the system of energy decomposition indices as the basis for policy making especially the power policy making, and adjust the structure in the direction of saving the electricity.