Analysis of Energy Intensity Decreasing Potential in China - The Contrast with OECD Countries

This paper focused on decomposition analysis in energy intensity among China and OECD countries, describe graph of energy intensity and economic development, find the reasons that cause energy intensity change in the past years. Using data of the China and OECD countries manufacturing industry and a multiplicative log-mean divisia method, we analyze the performance of the sector with respect to its energy intensity, value of production and energy consumption. A decomposition analysis was performed in order to separate structural, production and intensity effects. We try to find the relation between China and OECD countries and analyze the potential of decrease of energy intensity in China. Considering Chinese market characteristic, give many strategic suggestions to the energy policy maker relied on the result of the analysis