EconPapers    
Economics at your fingertips  
 

A strengthened relationship between electricity and economic growth in China: An empirical study with a structural equation model

Guangyue Xu, Hualiu Yang and Peter Schwarz

Energy, 2022, vol. 241, issue C

Abstract: Many empirical studies have examined the causal relationship between electricity consumption and economic growth. Given the significant role of China in global economic growth and electricity use, this study analyzes the multiple causal mechanisms underlying the electricity consumption-economic growth nexus in China using a structural equation model and comparing the nexus with national-level data from 1978 to 2019. This study contributes to the understanding of the direct and indirect causal mechanisms between the electricity consumption-economic growth nexus. We find: (1) the nexus has strengthened with time, and the direct and indirect effects from electricity consumption to economic growth have also increased with time; (2) indirect influences of electricity consumption on economic growth are stronger than the direct influence; and (3) increasing ecological awareness brought about by economic growth increases the demand for electricity generation from clean energy sources. Therefore, the Chinese government should formulate policies to facilitate high-quality electricity production to meet the increasing demand from economic growth.

Keywords: Electricity consumption; Economic growth; Causal mechanism; Structural equation model; China (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0360544221031546
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: https://EconPapers.repec.org/RePEc:eee:energy:v:241:y:2022:i:c:s0360544221031546

DOI: 10.1016/j.energy.2021.122905

Access Statistics for this article

Energy is currently edited by Henrik Lund and Mark J. Kaiser

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

 
Page updated 2022-04-09
Handle: RePEc:eee:energy:v:241:y:2022:i:c:s0360544221031546