Decomposition analysis of China's electricity intensity with LMDI method

Byline: Yongxiu He, Weijun Tao, Songlei Zhang, Weihong Yang, Furong Li Logarithmic Mean Divisia Index I (LMDI I) method is used to decompose China's Aggregate Electricity Intensity (CAEI) into structure effect and intensity effect at the 29-sub-sector level. The decomposition result shows that the intensity effect played a major role on the decline of CAEI during 1995-1999. Both structure effect and intensity effect account for the increase of CAEI since 2000. Structure effect and intensity effect account for 55.2% and 44.8%, respectively, of CAEI decrease during 1995-1999. The intensity effect contributed to the decline of CAEI during 1999-2007. However, the structure effect actually increased CAEI.