The Impact of Financial Crisis on Electricity Demand: A Case Study of North China

Huiru Zhao, Haoran Zhao, Sen Guo, Fuqiang Li and Yuou Hu
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Huiru Zhao: School of Economics and Management, North China Electric Power University, Beijing 102206, China
Haoran Zhao: School of Economics and Management, North China Electric Power University, Beijing 102206, China
Sen Guo: School of Economics and Management, North China Electric Power University, Beijing 102206, China
Fuqiang Li: North China Grid Company Limited, No. 482 Canton Avenue, Beijing Xuanwu District, Beijing 100053, China
Yuou Hu: North China Grid Company Limited, No. 482 Canton Avenue, Beijing Xuanwu District, Beijing 100053, China

Energies, 2016, vol. 9, issue 4, 1-13

Abstract: The electricity consumption and economic growth are highly correlated. The financial crisis in 2008 brought a negative effect on China’s economic growth, which also influenced the electricity consumption. The electricity demand of North China region was also greatly influenced by this financial crisis, the whole social electricity consumption growth rate of which decreased by 14.31% in 2008 compared to that in 2007. In order to analyze the random impulse effect of the financial crisis on the demand of electricity in North China, the monthly data is decomposed into deterministic trend, stochastic impact effect, and periodic trend using the Beveridge-Nelson decomposition method. After comparatively analyzing the impulse effect of the financial crisis on electricity consumption of six provinces in North China, we can draw the conclusions: (1) the electricity consumption of the whole society and the secondary industry are under larger negative impacts, and the random impulse effect of the secondary industry is more intense; and (2) the impact of the financial crisis on the tertiary industry, which is mainly influenced by seasonal changes, is smaller. Finally, some policy implications are proposed.

Keywords: electricity consumption; financial crisis; Beveridge-Nelson decomposition method; stochastic impact effect; North China (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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