The Impact of Electricity Grid Development on Economic Growth and Energy Consumption in Anhui Province: A Seemingly Unrelated Regression-Based Analysis

Xiaomin Shi, Xiang Gao, Rong Li, Ke Hou, Yang Song and Zhongjiang Lu ()
Additional contact information
Xiaomin Shi: Economic Research Institute, State Grid Anhui Electric Power Co., Ltd., Hefei 230022, China
Xiang Gao: Economic Research Institute, State Grid Anhui Electric Power Co., Ltd., Hefei 230022, China
Rong Li: Economic Research Institute, State Grid Anhui Electric Power Co., Ltd., Hefei 230022, China
Ke Hou: School of Economics, Hefei University of Technology, Hefei 230601, China
Yang Song: School of Economics, Hefei University of Technology, Hefei 230601, China
Zhongjiang Lu: School of Economics, Hefei University of Technology, Hefei 230601, China

Sustainability, 2025, vol. 17, issue 7, 1-20

Abstract: Endogeneity is an important issue that needs to be addressed in research. By integrating infrastructure into the input–output system based on a profit function framework, this paper investigates the impact of electricity infrastructure on economic development and energy consumption. Using city-level data from Anhui Province spanning 2012 to 2022 and applying seemingly unrelated regression techniques for parameter estimation, this study finds that an increase in grid density leads to a reduction in energy consumption. While the short-term effect of increased grid density may cause a decline in output, a positive long-term effect on output is observed. This study concludes that the advantages of robust power infrastructure in lowering energy intensity manifest only over an extended time horizon. Based on our findings, we provide relevant recommendations that can be applied to other regions as well.

Keywords: electricity infrastructure; energy consumption; economic growth; short-term elasticity; long-term elasticity (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/17/7/3193/pdf (application/pdf)
https://www.mdpi.com/2071-1050/17/7/3193/ (text/html)

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:gam:jsusta:v:17:y:2025:i:7:p:3193-:d:1627664

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().