The impacts of electricity consumption in China's key economic regions

Debin Fang, Peng Hao, Qian Yu and Jiancheng Wang

Applied Energy, 2020, vol. 267, issue C, No S0306261920305900

Abstract: The government predicts that the supply-demand relationship of electricity consumption will remain tense in China's three key economic regions. And the significant differences of many economic indicators indicate that change mechanism of electricity consumption of the three regions is different from that of others. Due to the limitation of continuous multiplication, the logarithmic mean weight Divisia index method cannot take into account the effect of some quantitative factors simultaneously, so how to disclose the mechanism of electricity consumption and provide its complete explanation is a pressing issue. To bridge these knowledge gap, we study on impacts of electricity consumption in China’s key economic regions by establishing Generalized Divisia Index model, which take the three quantitative factors of output, capital, and labor as the basic variables. The results show mainly that all three quantitative factors have stimulatory effects on electricity consumption, with capital having the greatest effect on electricity consumption. All five relative factors, apart from per capita electricity consumption, have inhibitory effects on electricity consumption. Then, we conclude that the major measure of alleviating the pressure of electricity consumption in the key areas is not only to reduce inefficient and low-end supplies but also to avoid excessive investment.

Keywords: Electricity consumption; Generalization of the Divisia index method (GDIM); Factor decomposition; Production function; Regions (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (8)

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DOI: 10.1016/j.apenergy.2020.115078

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