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ID: 111369

Residential energy consumption in urban China: a decomposition analysis / Zhao, Xiaoli; Li, Na; Ma, Chunbo

Zhao, Xiaoli	Journal Article
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2012.

Summary/Abstract

Residential energy consumption (REC) is the second largest energy use category (10%) in China and urban residents account for 63% of the REC. Understanding the underlying drivers of variations of urban REC thus helps to identify challenges and opportunities and provide advices for future policy measures. This paper applies the LMDI method to a decomposition of China's urban REC during the period of 1998-2007 at disaggregated product/activity level using data collected from a wide range of sources. Our results have shown an extensive structure change towards a more energy-intensive household consumption structure as well as an intensive structure change towards high-quality and cleaner energy such as electricity, oil, and natural gas, which reflects a changing lifestyle and consumption mode in pursuit of a higher level of comfort, convenience and environmental protection. We have also found that China's price reforms in the energy sector have contributed to a reduction of REC while scale factors including increased urban population and income levels have played a key role in the rapid growth of REC. We suggest that further deregulation in energy prices and regulatory as well as voluntary energy efficiency and conservation policies in the residential sector should be promoted.

Key Words

China ; Residential Energy Consumption ; Index Decomposition Analysis (IDA)

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ID: 094243

Why did China’s energy intensity increase during 1998–2006: decomposition and policy analysis / Zhao, Xiaoli; Ma, Chunbo; Hong, Dongyue

Zhao, Xiaoli	Journal Article
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Publication

2010.

Summary/Abstract

Despite the fact that China's energy intensity has continuously decreased during the 1980s and mostly 1990s, the decreasing trend has reversed since 1998 and the past few years have witnessed rapid increase in China's energy intensity. We firstly conduct an index decomposition analysis to identify the key forces behind the increase. It is found that: (1) the high energy demand in industrial sectors is mainly attributed to expansion of production scale, especially in energy-intensive industries; (2) energy saving mainly comes from efficiency improvement, with energy-intensive sectors making the largest contribution; and (3) a heavier industrial structure also contributes to the increase. This study also makes the first attempt to bridge the quantitative decomposition analysis with qualitative policy analyses and fill the gap between decomposition results and policy relevance in previous work. We argue that: (1) energy efficiency improvement in energy-intensive sectors is mainly due to the industrial policies that have been implemented in the past few years; (2) low energy prices have directly contributed to high industrial energy consumption and indirectly to the heavy industrial structure. We provide policy suggestions in the end.

Key Words

Industrial policy ; China's Energy Consumption ; Energy Price Policy ; China’s Energy Consumption

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