LMDI decomposition of coal consumption in China based on the energy allocation diagram of coal flows: An update for 2005–2020 with improved sectoral resolutions

Abstract

Chinese policymakers are addressing climate change by altering the coal-heavy energy structure. Although coal propelled economic growth, its environmental impacts challenge sustainable development. To balance growth with environmental care, the authorities aim to decrease coal use and enhance clean coal technologies. Thus, understanding coal consumption mechanisms and influencing factors is vital. Actions include adjusting economic structures, lowering energy intensity, enhancing energy layouts, increasing coal-fired efficiency, and optimising power sources. This study used the energy allocation analysis–logarithmic mean Divisia index (EAA–LMDI) decomposition method to examine coal consumption changes from 2005 to 2010, 2010–2015, and 2015–2020. A distinctive feature of this study is that it integrated the EAA method to meticulously consider technical factors that are rarely considered by other researchers. These are the primary factors restraining coal consumption growth. This study also used Sankey diagrams to illustrate the formation mechanisms of coal consumption in China. The findings highlight the contributions of economic development, energy intensity, economic structure adjustments, end-use energy structure, coal-fired power generation efficiency, and power source adjustments to changes in coal consumption in China. The insights of this study can support policymakers in designing effective policies for achieving sustainable energy development and reducing coal consumption in China.