International Journal of Energy and Power Engineering

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A Co-Integration Analysis Between Electricity Consumption and Economic Development in Hebei Province

Received: 18 March 2015    Accepted: 26 April 2015    Published: 15 July 2015
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Abstract

Electricity is a convenient and clean energy which can provide strong support for the development of all walks of life. The power development should maintain coordination with the regional economic development, in which power development may advance sometimes. Hebei province is a typical resource-based area in China, and its power consumption is closely related to economic development, which makes it important to study the relationship between electricity and economic development in Hebei. In order to select the economic factors affecting electricity demand, the gray correlation analysis is used to analyse the correlation among different factors. And then, a long-term equilibrium model between electricity consumption and economic factors is proposed through co-integration analysis. The analysis result showed that the electricity consumption, GDP, the level of residential consumption, efficiency levels and economic structures have a long-run equilibrium relationship in Hebei Province, in which the economic structure has the strongest impact on the electricity consumption, followed by GDP, energy consumption intensity and the residential consumption level. Currently, the impact of the economic restructuring on electricity demand in Hebei cannot be overlooked. Furthermore, this model can be used to give a reference to Hebei Electric Power Planning.

DOI 10.11648/j.ijepe.s.2015040401.11
Published in International Journal of Energy and Power Engineering (Volume 4, Issue 4-1, August 2015)

This article belongs to the Special Issue Current Energy Issues in China

Page(s) 1-6
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Electricity Consumption, Economic Development, Co-Integration Theory

References
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[2] Soytas U, Sari R. Energy consumption and GDP: causality relationship in G7 countries and emerging markets[J]. Energy Economics, 5(1), pp.33-37, 2003.
[3] Hondroyiannis G, Lolos S, Papapetrou E. Energy consumption and economic growth:assessing the evidence from Greece[J]. Energy Economics, 24(4), pp.319-336, 2002.
[4] Cheng B L, Lai T W. An investigation of co-integration and causality between energy consumption and economic activity in Taiwan [J]. Energy Economics, 19(4), pp.435-444, 1997.
[5] Yang H Y. A Note on the causal relationship between energy consumption and GDP in Taiwan [J]. Energy Economics.22(4), pp.309-317, 2000.
[6] Lin Boqiang. Structural change, efficiency improvement and electricity demand forecasting[J]. Economic Research, 38(5), pp. 57-65, 2003.
[7] Shiu A, Lam P L. Electricity consumption and economy growth in China [J]. Energy Policy, 32(1), pp. 47-54, 2004.
[8] Granger C.W.J. Some properties of time series data and their use in econometric model specification [J]. Journal of econometrics, 16(1), pp. 121-130, 1981.
[9] Engle R F, Granger C W J. Co-integration and error correction: representation, estimation, and testing [J]. Econometrica: journal of the Econometric Society, pp. 251-276, 1987.
[10] Dickey D A, Fuller W A. Likelihood ratio statistics for autoregressive time series with a unit root [J]. Econometrica: Journal of the Econometric Society, pp.1057-1072, 1981.
[11] Johansen S, Juselius K. Maximum likelihood estimation and inference on co-integration—with applications to the demand for money [J]. Oxford Bulletin of Economics and statistics, 52(2), pp. 169-210, 1990.
Author Information
  • School of Economics and Management, North China Electric Power University, Beijing, China

  • School of Economics and Management, North China Electric Power University, Beijing, China

  • School of Economics and Management, North China Electric Power University, Beijing, China

  • North China Grid Company Limited, Beijing, China

  • North China Grid Company Limited, Beijing, China

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  • APA Style

    Huiru Zhao, Yaowen Fan, Nana Li, Fuqiang Li, Yuou Hu. (2015). A Co-Integration Analysis Between Electricity Consumption and Economic Development in Hebei Province. International Journal of Energy and Power Engineering, 4(4-1), 1-6. https://doi.org/10.11648/j.ijepe.s.2015040401.11

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    ACS Style

    Huiru Zhao; Yaowen Fan; Nana Li; Fuqiang Li; Yuou Hu. A Co-Integration Analysis Between Electricity Consumption and Economic Development in Hebei Province. Int. J. Energy Power Eng. 2015, 4(4-1), 1-6. doi: 10.11648/j.ijepe.s.2015040401.11

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    AMA Style

    Huiru Zhao, Yaowen Fan, Nana Li, Fuqiang Li, Yuou Hu. A Co-Integration Analysis Between Electricity Consumption and Economic Development in Hebei Province. Int J Energy Power Eng. 2015;4(4-1):1-6. doi: 10.11648/j.ijepe.s.2015040401.11

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  • @article{10.11648/j.ijepe.s.2015040401.11,
      author = {Huiru Zhao and Yaowen Fan and Nana Li and Fuqiang Li and Yuou Hu},
      title = {A Co-Integration Analysis Between Electricity Consumption and Economic Development in Hebei Province},
      journal = {International Journal of Energy and Power Engineering},
      volume = {4},
      number = {4-1},
      pages = {1-6},
      doi = {10.11648/j.ijepe.s.2015040401.11},
      url = {https://doi.org/10.11648/j.ijepe.s.2015040401.11},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.ijepe.s.2015040401.11},
      abstract = {Electricity is a convenient and clean energy which can provide strong support for the development of all walks of life. The power development should maintain coordination with the regional economic development, in which power development may advance sometimes. Hebei province is a typical resource-based area in China, and its power consumption is closely related to economic development, which makes it important to study the relationship between electricity and economic development in Hebei. In order to select the economic factors affecting electricity demand, the gray correlation analysis is used to analyse the correlation among different factors. And then, a long-term equilibrium model between electricity consumption and economic factors is proposed through co-integration analysis. The analysis result showed that the electricity consumption, GDP, the level of residential consumption, efficiency levels and economic structures have a long-run equilibrium relationship in Hebei Province, in which the economic structure has the strongest impact on the electricity consumption, followed by GDP, energy consumption intensity and the residential consumption level. Currently, the impact of the economic restructuring on electricity demand in Hebei cannot be overlooked. Furthermore, this model can be used to give a reference to Hebei Electric Power Planning.},
     year = {2015}
    }
    

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  • TY  - JOUR
    T1  - A Co-Integration Analysis Between Electricity Consumption and Economic Development in Hebei Province
    AU  - Huiru Zhao
    AU  - Yaowen Fan
    AU  - Nana Li
    AU  - Fuqiang Li
    AU  - Yuou Hu
    Y1  - 2015/07/15
    PY  - 2015
    N1  - https://doi.org/10.11648/j.ijepe.s.2015040401.11
    DO  - 10.11648/j.ijepe.s.2015040401.11
    T2  - International Journal of Energy and Power Engineering
    JF  - International Journal of Energy and Power Engineering
    JO  - International Journal of Energy and Power Engineering
    SP  - 1
    EP  - 6
    PB  - Science Publishing Group
    SN  - 2326-960X
    UR  - https://doi.org/10.11648/j.ijepe.s.2015040401.11
    AB  - Electricity is a convenient and clean energy which can provide strong support for the development of all walks of life. The power development should maintain coordination with the regional economic development, in which power development may advance sometimes. Hebei province is a typical resource-based area in China, and its power consumption is closely related to economic development, which makes it important to study the relationship between electricity and economic development in Hebei. In order to select the economic factors affecting electricity demand, the gray correlation analysis is used to analyse the correlation among different factors. And then, a long-term equilibrium model between electricity consumption and economic factors is proposed through co-integration analysis. The analysis result showed that the electricity consumption, GDP, the level of residential consumption, efficiency levels and economic structures have a long-run equilibrium relationship in Hebei Province, in which the economic structure has the strongest impact on the electricity consumption, followed by GDP, energy consumption intensity and the residential consumption level. Currently, the impact of the economic restructuring on electricity demand in Hebei cannot be overlooked. Furthermore, this model can be used to give a reference to Hebei Electric Power Planning.
    VL  - 4
    IS  - 4-1
    ER  - 

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