Decomposition of Energy Intensity of China's Manufacturing Industry-Based on Technological Change, Factor Substitution and Trade Perspective

This paper applies input-output table time series 1981-2005 to estimate a system of share equations for energy, capital, labor, trade and materials in China production sectors. Cost function is set as translog cost function, taking account of biased technological change and increasing trade orientation. Results show that factors substitution, technological changes, trade, primary energy structure and industries structure change are main factors caused energy intensity change.