Star Wars? Space Weather and Electricity Market: Evidence from China

Tong Wu, Zhe You, Mengqi Gong and Jinhua Cheng
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Tong Wu: School of Law and Business, Wuhan Institute of Technology, Wuhan 430205, China
Zhe You: School of Law and Business, Wuhan Institute of Technology, Wuhan 430205, China
Mengqi Gong: School of Law and Business, Wuhan Institute of Technology, Wuhan 430205, China
Jinhua Cheng: School of Economics and Management, China University of Geoscience, 388 Lumo Road, Wuhan 430074, China

Energies, 2021, vol. 14, issue 17, 1-14

Abstract: This paper aims to investigate the impact of space weather on China’s electricity market. Based on data products provided by NOAA and the National Energy Administration in China, this paper uses solar wind velocity as a solar weather indicator and the disturbance storm time index as a magnetospheric weather indicator to match monthly Chinese electricity market data over 10 years. Based on a VAR model, we found that (1) space weather increases the demand for electricity in China, and solar wind speed and the geomagnetic index increase the electricity consumption of the whole of Chinese society, as space weather mainly increases the electricity consumption of the secondary and industrial sectors. (2) The geomagnetic index significantly promotes power station revenue. (3) Space weather is associated with increased energy consumption. The geomagnetic index significantly increases the coal consumption rate of fossil power plants in China, but the solar wind speed has nothing to do with the coal consumption rate of fossil power plants.

Keywords: space weather; solar wind; geomagnetic; electricity sales; power demand; coal consumption (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: 2021
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