CHANGING ENERGY INTENSITY IN CHINESE INDUSTRY - THE RELATIVE IMPORTANCE OF STRUCTURAL SHIFT AND INTENSITY CHANGE

We analysed three different sets of energy consumption and output valu e data using a Laspeyres index method to determine the relative roles of structural shift and real intensity change in China's industrial se ctor between 1980 and 1990. Contrary to prevailing views, we find that real intensity change (economic intensity of industrial subsectors, c omposed of physical intensity change and other non-structural factors) accounted for most of the large apparent drop in industrial energy in tensity in the 1980s. Comparison of economic and physical energy inten sity indicators suggests that physical intensity was not the only majo r cause of real intensity change.