Analysis on the Influencing Factors of Multidimensional LMDI Energy Consumption—A Case Study of Chongqing

Abstract

In 2016, Chongqing formulates and announces the outline of its 13th Five-Year Plan for economic and social development, which emphasizes the effective control of the total energy consumption. This is of great strategic significance to the mission of achieving sustainable energy supply, and the coordinated development between economic, social and ecological environment for Chongqing. This paper introduces a multidimensional LMDI (Logarithmic Mean Divisia Index) model for analyzing the energy consumption, by considering five factors: urbanization rate, industrial structure, economic growth, technical progress and scale of the population. The factors urbanization rate and industrial structure are newly introduced in this study. The data used are collected from Chongqing Statistics Yearbook for the period of 1997–2013. The results show that economic growth is the main factor for the growth of energy consumption in Chongqing; technical progress plays a significant role in energy saving; urbanization contributes the increase of energy consumption; industrial structure is also a major factor affecting energy consumption, and the energy saving effect from industrial restructuring has not been materialized. This paper reveals the relationship between energy consumption and economic growth, technical progress, urbanization, industrial structure, and the scale of the population. It can provide references for studying measures controlling energy consumption.