Economics at your fingertips  

Analysis of the dependence of economic growth on electric power input and its influencing factors in China

Pinjie Xie, Han Li, Feihu Sun and Huizhen Tian

Energy Policy, 2021, vol. 158, issue C

Abstract: To realize the “Green” economic development, China has to transform the extensive mode of growth with the power factor inputs being the main driving force gradually into an intensive one. It's important to quantitatively analyze the relationship between the power factor input and economic growth and understand the core factors that affect the coordinated development between them. We introduce the concept of “power dependence,” based on the counter-factual method, use “growth drag” to reflect the dependence of China's economic growth on the power factor input. Based on the measurement of national power dependence, the auto-regressive distributed lag (ARDL) model is used to develop an empirical analysis of its influencing factors, and the robustness of the findings is tested by using the inter-provincial panel data. The findings show that China's economic growth has depended on the power factor input to some extent. According to the results, we propose suggestions from the aspects of promoting economic development, improving the pricing mechanism, adjusting the power generation structure, reasonably regulating the introduction of the foreign direct investment and research and development investment, and optimizing industrial structure to find an effective means to reduce the dependence of China's economic growth on the power factor input.

Keywords: Dependence; Electricity consumption; Growth drag; ARDL (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.1016/j.enpol.2021.112528

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

Page updated 2023-09-20
Handle: RePEc:eee:enepol:v:158:y:2021:i:c:s0301421521003980