Abstract
There have been significant decreases in the aggregate energy intensity of industry in China, Korea and Taiwan since 1980. We decompose changes in this often-used energy performance indicator into contributions associated with industry product mix and sectoral energy intensity. In all cases, the results obtained show a large effect of changes in sectoral energy intensity and a relatively smaller effect of changes in product mix. We further decompose the sectoral energy intensity effect to identify the impact of fuel substitution. It is concluded that decreases in the aggregate energy intensity of industry in the three economies were due primarily to improvements in fuel use efficiency.
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