Determinants of aggregate energy intensity with consideration of intra-industry trade

In order to investigate the impact of trade structure on the aggregate energy intensity besides the traditional factors such as price and technology, this paper establishes a regression model with consideration of intra-industry trade, which is a sound symbol for the trade structure. Using panel data covering 25 manufacturing industries and the period of 1996~2005 from China, it finds out that the rising of relative energy price, the enhancing of technology level, and the openness contribute significantly to the falling of the aggregate energy intensity, whereas the development of intra-industry trade seems to stimulate the energy consumption, leading to an increasing aggregate energy intensity. It is a meaningful reference for the government.