Study on Chinese industrial SO2 emission intensity based on LMDI I and LMDI II method

Based on logarithmic mean Divisia index method I and II, the factors impacting the changes of Chinese industrial SO₂ emission intensity are decomposed into SO₂ production intensity effect, government control effect (policy effect) and industrial structural effect. Using data of 1998 to 2006, result shows that the main driver behind the reduction of SO₂ emission intensity is SO₂ production intensity, contribute 5285 ton/ RMB Yuan reduction. That means technological improvement is the main impact factor to the changes of SO₂ emission intensity. Meanwhile, the influences of policy effect and industrial structural effect have more possibilities to enlarge. Therefore, at the same time of paying attention to technology progress, we should intensify the industrial structural adjustment and SO₂ emissions government control.