China’s energy intensity change in 1997–2015: Non-vertical adjusted structural decomposition analysis based on input-output tables

Abstract

Energy saving is essential to sustainable development and has been a major target set by the Chinese government. This study analyzes China’s energy intensity change during 1997–2015. This paper applies non-vertical adjusted structural decomposition analysis method to build comparable input-output tables and decomposes China’s energy use according to technical change, demand structure, import structure, import quantity, and export quantity for five types of energy. The results show that: (1) Both technical changes and demand structure changes are important driving forces for China’s energy intensity decrease; (2) Technical changes have played an increasingly important role in energy intensity decrease over time since 2002; (3) Technical change effect has caused the energy intensity of traditional high energy-consuming industries to decrease; (4) The results are robust under different degrees of non-vertical adjustments. Although technical change has played a critical role in China’s energy saving, the increase in demands will become increasingly important factors in changes to energy intensity and will require continued future research.