China's Energy Consumption and Dynamic Decomposion of TFP: 2000-2010

This paper employs the Malmquist method to inspect the dynamic changes of China's energy consumption and the total factor productivity(TFP) during 2000-2010 at the prefecture-level cities. Given the input of the energy factor, the average annual increase of TFP is 2.9%, much higher than the rate of 0.2% under the two-factor model of labor and capital, which indicates that energy saving and efficiency improvement has become the main driving force for the increase in productivity.When the TFP is further divided into efficiency change(EC) and technical progress, it is found that efficiency change and technical progress both contribute remarkably to TFP growth during 2000-2005;the technical progress in the eastern region is remarkable, while energy changes in the central and western regions have great advantages; in order to raise the level of regional productivity, about half of the cities in China still have to improve the levels of their EC or EP; technical progress will be the key point for the improvement of China's productivity and realization of sustainable development in the 21 st century.