The decomposition effect of energy consumption in China's manufacturing industry:an LMDI-model-based analysis

This paper first of all constructs a logarithmic mean divisia index(LMDI) model of energy consumption.Then this model is applied to the energy consumption decomposition of China's manufacturing industry.It is found out that the scale effect is the main reason for the changes in China's energy consumption,the structural effect has more or less increased energy consumption since 2003,and that the technical effect is the driving force for energy-saving though it increases power consumption.The further analysis of the manufacturing sectors exhibits that the structural effect and technical effect vary from sector to sector.Therefore,full allowance should be made for the conditions of different sectors in promoting energy conservation so that energy-saving technologies can be widely and efficiently applied.