Multidimensional Effects Decomposition of Urbanization on Energy Consumption based on a Modified LMDI Model

Abstract

Urbanization is important for population transfer, it triggers the coordination and adaptation process among population, space and industries, which in turn have multiple effects on energy consumption (EC). This paper conducted multidimensional effects decomposition of EC change in China (1998–2017) based on a modified LMDI model. The findings revealed that urbanization has a greater pulling effect on EC of production side over life side. Household consumption effect is the leading factor stimulating the increase in EC at production side. The convergence of urban and rural residents' consumption behaviors has increasingly contributed to EC fluctuation at life side, and become the handicap for energy sustainable development with population expansion. Unreasonable land utilization from space aspect has intensified EC, however, the scale effect produced by population agglomeration negatively caused fluctuation of living EC. The transformation and upgrading of traditional energy-driven industries and technological progress have alleviated energy pressure, and the consumption inhibiting effect has an inverted U-shaped effect on EC (promote first, decrease later). Thus, this paper further proposed that when the development from industry aspect encounters bottleneck, more attention should be paid to improve residents' consumption habits at population aspect, and release resource allocation momentum from space aspect to reduce EC.