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Determinants of electricity demand in the Chinese industrial sector: A decomposition analysis

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Indexed by:会议论文

Date of Publication:2010-01-01

Included Journals:CPCI-SSH

Page Number:3396-3399

Key Words:electricity consumption; Refined Laspeyres Index method; decomposition analysis

Abstract:This paper analyzes the changes in the electricity consumption of the industrial sector in China over the period 1998-2007, using the Refined Laspeyres Index decomposition method (RLIM). The results show that over this period the main factor which contributed to the increase in the electricity consumption was industrial economic growth, followed by electricity substitution, namely shifts effect. Structural effect had only a small role accounting for this increase. On the contrary, the subsectors' energy intensity effect was mainly responsible for the decrease in industrial electricity consumption. Moreover, it is found that the dominant contributors to the incremental electricity consumption among subsectors are manufacture of textile, raw chemical material & products, manufacturing of non-metal mineral products, smelting & pressing of ferrous and non-ferrous metals, and production & supply of electric power and heat power. These sectors should take priorities on industrial restructuring in order to implement the policies of energy saving or electricity saving.

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