Changing Energy Efficiency in Energy-Deficient Shandong, China

Shandong is a highly developed and energy-deficient province in the east of China. The energy self-sufficiency ratio had decreased from 78.54% in 2000 to 33.32% in 2016. However, Shandong's energy efficiency has not received researcher's attention. Therefore, this study aims to explore the major forces in changing energy efficiency of Shandong utilizing the revised Divisia Index Model between 2001 and 2015. The results of this research show that: Firstly, energy-saving policies are the major factors for the reduction of Shandong's energy intensity, especially for the secondary sector. Secondly, improving energy efficiency has always been the driving force for decreasing energy intensity in Shandong from 2001 to 2015. Finally, the effect of industrial structure has gradually increased since 2006 and its contribution towards reducing energy intensity has been increasing.