『Abstract
　Residential energy consumption (REC) is the second largest energy use category (10%) in China and urban residents account for 63% of the REC. Understanding the underlying drivers of variations of urban REC thus helps to identify challenges and opportunities and provide advices for future policy measures. This paper applies the LMDI method to a decomposition of China's urban REC during the period of 1998-2007 at disaggregated product/activity level using data collected from a wide range of sources. Our results have shown an extensive structure change towards a more energy-intensive household consumption structure as well as an intensive structure change towards high-quality and cleaner energy such as electricity, oil, and natural gas, which reflects a changing lifestyle and consumption mode in pursuit of a higher level of comfort, convenience and environmental protection. We have also found that China's price reforms in the energy sector have contributed to a reduction of REC while scale factors including increased urban population and income levels have played a key role in the rapid growth of REC. We suggest that further deregulation in energy prices and regulatory as well as voluntary energy efficiency and conservation policies in the residential sector should be promoted.

Keywords: Residential energy consumption; Index Decomposition Analysis (IDA); China』

1. Introduction
2. Literature review
　2.1. Improvement of residential building energy efficiency
　2.2. Change of REC structure
　2.3. Factors affecting the ownership and use of private vehicles
　2.4. Impacts of household characteristics on energy saving and emission based on direct and indirect energy consumption
3. Method
4. Data - urban REC and expenditures
　4.1. Private transportation
　4.2. Electrical appliances
　4.3. Central heating
　4.4. Other energy-using activities
　4.5. Lighting
5. Results and discussion
　5.1. Results
　　5.1.1. Energy price effect promotes REC decrease
　　5.1.2. Scale effect (expenditure effect and population effect) promotes REC increase
　　5.1.3. Extensive structural effect (larger share of energy expenditure) promotes REC increase
　　5.1.4. Intensive structural effect (consumption structure change of energy products and energy-using products) promotes REC decrease
　5.2. Sensitivity analysis
　5.3. Further discussion
6. Conclusion and policy suggestions
　6.1. Energy price deregulation
　6.2. Energy-efficiency standards and policies
　6.3. Energy-saving consciousness
　6.4. Limitation and further research
Acknowledgments
Appendix A. Data description and sources
Appendix B. Energy consumption (Mtce) and expenditure (RMB 100 million)
Appendix C. Energy conversion parameters
References