The role of industrial structure in China's energy intensity

This article analyzes China's energy intensity changing during 1980 to 2005 by decomposing it into structure effect and intensity effect. The result shows that intensity effect plays positive action while structure effect plays negative action during the past 25 years. Whereas the analysis of international comparison in 2003 shows structure effect is the main reason of energy intensity variety between China and other countries, especially with developing countries as India and Brazil. Therefore, this article points out that the industrial structure should he adjusted by reducing the share of China's secondary industry in order to decrease its total energy intensity.