Original scientific paper
https://doi.org/10.1080/1331677X.2021.1875864
Optimal dynamic electricity consumption function estimation: an institutional experimental evidence from Guangzhou, China (1949-2016)
Yiming He
Alan R. Collins
Abstract
This research demonstrates from a dynamic optimal perspective
that electricity consumption for a metropolitan area is a function
of economic output, electricity consumption habits, and electricity
demand management reform. The empirical results include: (1) an
unidirectional Granger causality exists linking economic output to
electricity consumption; (2) given electricity consumption habits
under the context of the electricity demand management reform,
an economic output increase of 1% results in the increase of electricity consumption by 0.22%, and (3), after demand management
has been implemented, economic output continues to increase
electricity consumption, but at a lower rate than prior to reform.
These empirical results imply that the ‘conservation hypothesis’ is
upheld over the long-run at the regional level in Guangzhou from
1949 to 2016.
Keywords
Electricity consumption; metropolitan growth; dynamic general equilibrium; kink discontinuity regression; Guangzhou
Hrčak ID:
301671
URI
Publication date:
31.12.2021.
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