The energy footprint of China's textile industry: Perspectives from decoupling and decomposition analysis

Abstract

Energy is the essential input for operations along the industrial manufacturing chain of textiles. China's textile industry is facing great pressure on energy consumption reduction. This paper presents an analysis of the energy footprint (EFP) of China's textile industry from 1991 to 2015. The relationship between EFP and economic growth in the textile industry was investigated with a decoupling index approach. The logarithmic mean Divisia index approach was applied for decomposition analysis on how changes in key factors influenced the EFP of China's textile industry. Results showed that the EFP of China's textile industry increased from 41.1 Mt in 1991 to 99.6 Mt in 2015. EFP increased fastest in the period of 1996-2007, with an average annual increasing rate of 7.7 percent, especially from 2001 to 2007 (8.5 percent). Manufacture of textile sector consumed most (from 58 percent to 76 percent) of the energy among the three sub-sectors, as it has lots of energy-intensive procedures. EFP and economic growth were in a relative decoupling state for most years of the researched period. Their relationship showed a clear tendency toward decoupling. Industrial scale was the most important factor that led to the increase of EFP, while decreasing energy intensity contributed significantly to reducing the EFP. The promoting effect of the factors was larger than the inhibiting effect on EFP in most years from 1991 to 2015.