Using a new decoupling indicator (ZM decoupling indicator) to study the relationship between the economic growth and energy consumption in China

Abstract

The decoupling analysis has become an important tool to explore whether an economy is becoming less dependent on energy resources. Based on the LMDI (Log-Mean Divisia Index) method, this paper defines a new decoupling indicator (ZM decoupling indicator), which depicts the relationship between energy saving influence factors and energy driving influence factors. Then, the ZM decoupling indicator is utilized to explore the state of decoupling between economic growth and energy consumption in China. The main results are as follows: (1) The gap of economic structure between the secondary industry and tertiary industry gradually narrowed during the study period 1991–2012. (2) The economic growth effect ($\Delta E_{\text{g}}^{t}$) was the critical factor in the growth of the final energy consumption in China. However, the energy intensity effect ($\Delta E_{\text{ei}}^{t}$) played an important role in decreasing the final energy consumption. (3) Based on the definition of ZM decoupling indicator, only four decoupling statuses occurred in China over the study period: weak decoupling, expansive coupling, strong decoupling, and expansive negative decoupling.