EXTENDED ABSTRACT

The energy intensity of the Chinese economy, measured as the ratio of total energy consumed in standard coal equivalent to real GDP, has been declining continuously since 1989. While various studies have been carried out to explain factors driving China’s energy consumption, only a few studies have focused on modelling the causes of China’s decline in energy intensity. The study of Fisher-Vanden et al (2004) used the regression approach to modelling energy intensity based on sample data collected on a large number of industrial enterprises. With two most recent input-output tables at the time, Garbaccio et al (1999) employed the input-output approach t