Empirical Analysis Of Factors Affecting Energy Intensity Of Eastern China

Energy is the material basis of the survival and development of human society, has a particularly important strategic position in the national economy. China is the second largest energy consumer, consumption grews fast. Since reform and opening up, along with China's rapid economic development, China's total energy consumption is also growing rapidly. The limit of energy makes energy efficiency be the focus of public attention. China's energy efficiency is relatively low and energy intensity is large. Although since reform and opening up, China's energy intensity declined rapidly, but energy intensity is still 3 times of the world average. In twelfth five-year plans,China's energy plan focuses on the central government to achieve the realization of non-fossil energy sources by 2020, the proportion reached 15% and 40% of carbon emissions to 45%.These two objectives is Chinese government's commitment to the world, but also change our way of promoting the development of economic growth.Based on the division of China in regional economics, the eastern region is the object of this paper. Different regions of China, have significant difference in the process of industrialization, resource endowment, economic structure. The study of the regional energy situation alone can be a better combination with the objective reality and draws scientific results. Provinces of the eastern region have relatively similar resource endowments and economic structures, to study them as a whole, the conclusion can be consistent with the objective reality. In the eastern region, economic development and energy use are in a leading position compared to the central and western areas. To study the energy intensity of the eastern part, the conclusions and energy efficiency policies is policy-making forward-looking guidance for the central and western regions.In this paper, in the perspective of Neoclassical Production, with the CD production function including the three elements of function, including capital,labor and energy, to calculate the cost elements in eastern. Found that capital is much greater than the proportion of energy and labor, and to estimate the self and cross price elasticity. Price elasticity can see by the self-energy inelastic demand for capital, and labor demand elasticity. And also verified the labor demand of China's eastern province of the "labor shortage". The cross-price elasticity between the elements is illustrated in the relationship between the elements that compensate for the energy and capital. Energy is alternative for labor. This is also in line with the actual status of eastern China, the proportion of capital over large capital investment and thus stimulate demand for energy, making the country's eastern region's energy intensity increased. Secondly, on the basis of the first part, with the introduction of economic growth and technological progress, combined with the previous analysis of the three elements, analyses the various factors on changes in energy intensity. In this paper, theoretical analysis of the impact of energy intensity, due to changes in the budget, factor replacement, economic growth and technological progress. The empirical conclusion that the change of energy intensity of China's eastern due to the elements of alternative factors, the complementary relationship between capital and energy impact as the main factor. Because the eastern region's rapid economic development in a large number of investment capital to drive demand for energy increases, this effect has become a major part of the impact of technological progress as a secondary effect. Given the direction of influence, China's technological progress drives the energy consumption. In the past 15 years, China's economic development emphasize the growth of economic aggregate with the cost of energy-intensive resources. Technological progress, leading to more demand for energy, but makes the rise in energy intensity. Also found that the economic growth factor is also the main factors driving energy intensity. Energy consumption increases, thereby increasing the intensity of energy consumption. Finally, according to research findings, this paper gives the corresponding policy recommendations in the hope of energy as an energy policy in future.