A Decomposition Analysis on Influencing Factors of Industrial Energy Consumption: A Case Study on "The Tenth Five-Year Plan" for Beijing

Energy consumption decomposition is a commonly used method when studying on influencing factors of energy consumption. The paper introduced a relatively reasonable decomposition method-logarithmic mean Divisia index decomposition (LMDI), and decomposed influencing factors of energy consumption into three parts: Scale effect affected by changes in gross production value, structural effect affected by changes in production value of sectors, and efficiency effect affected by energy improvement within industry. The data of industrial energy consumption and gross production value for Beijing during the period of "The 10th five-year plan" were selected in following empirical analysis. The results showed the decrease of efficiency effect and structural effect promoted the falling of energy intensity together, and the action of former factor was larger than later, what was more, the increase of scale effect led the same changes in energy consumption. According to research ,the author suggests industrial energy consumption reduction strategies should aim at accelerate technological innovation and industrial structural adjustments, develop resource-saving economy and take advantage of industrial structural adjustments.