Abstract:Energy consumption growth promotes industrial output growth but obstructs the optimization and upgrading of industrial structure. Energy, as production factor, is introduced into C-D production function, by using the related data of industry and all industries inside industry of China during 2000-2014, this paper measures the contribution of energy consumption and other factors to industrial growth, and uses LMDI energy strength decomposition model to analyze the influence of technical progress and structure transformation on industrial energy intensity change. The results show that China’s industrial growth has the feature of double-driving by capital and energy, energy output elasticity closes to capital output elasticity over the same period and is far higher than labor output elasticity, that factor contribution is made mainly by capital and energy and then by TFP and labor, that industrial energy intensity is continuously decreasing but the decreasing extent is slowed down, that general technological progress in various industries plays a decisive role in reducing the intensity of industrial energy consumption, but the rate of decrease in energy intensity slows down and further reduction of energy consumption through technological progress has become increasingly difficult, that the slow progress of industrial structure adjustment makes the proportion of high energy consumption industry rise but not fall, and the structural factor hinders the decrease of the energy intensity. Therefore, in order to reduce the intensity of industrial energy consumption, it is significant to focus on promoting the internal structural adjustment and upgrading of the industry and to reduce the dependence on energy.