Energy efficiency, energy infrastructure and sustainable development in North-East China

North-east China as the nation´s manufacturing base relies heavily on energy supply. Index decomposition analysis reveals that energy consumption is determined mainly by production effect, followed by intensity effect and structural effect. Data Envelopment Analysis shows that there is lack of efficiency in production mainly caused by energy waste. In specialty, energy consumption is determined by secondary industry for its regional character, and meanwhile energy waste is also a major factor to impede efficient production, so there is a mutual impact between energy efficiency and production efficiency. The energy consumption and regional GDP are nonstationary, but they are cointegrated in some degree, which suggests that innovations in energy market will have permanent effects on other economic sectors. However, the coordination level between energy and GDP is not steadily progressing, which calls for industrial restructuring and technological innovation at both government level and firm level to reduce energy consumption and improve economic efficiency.