Abstract: China's petrochemical industry is one of pillar industries of national economy. The energy consumption in this industry remains high level although its energy efficiency has increased. To explore the reason,the paper used the translog cost function to construct the factor cost share equation,measured the rebound effect of asymmetric energy price response,and combined the absolute substitution elasticity and the relative substitution elasticity to analyze the rebound effect and trend of the changing character of the factor substitution relationship as well from 1980 to 2013. The paper also revealed the reasons for the continuous increase of energy consumption in China's petrochemical industry. The results show that:(1)The energy rebound effect was 32.23% from 1980 to 2013,offsetting the decrease of energy consumption caused by technical progress;(2)The absolute substitution of capital for energywas dominant that of energy for capital,while the relative substitution of energy for capital was dominant that of capital for energy.(3)During the period of 6thand 7th "Five-YearPlan",the reasons of shortage of energy supply and the large-scale construction of infrastructure made the rebound effect reached to more than 40%. The relative substitution elasticity of capital for energy was dominant during the period. The relative substitution elasticity of capital for energy was dominant,while the magnitude of rebound effect has been decreasing since 8th "Five-YearPlan". It could be concluded that the rebound effect and the substitution effect of energy to capital are the main reasons for the continuous increase of energy consumption in China's petrochemical industry.