Short-term Relationship between Electricity Consumption and Economic Growth

Abstract

Electricity is an indispensable material basis for economic development. It is necessary to study the relationship between different electricity consumption and economic growth. Based on the quarterly data of China's electricity consumption and economic development from 2011 to 2018, the long-term equilibrium relationship between variables is analyzed from a causal perspective, the short-term fluctuations between variables are analyzed from a relative effectiveness perspective, and electricity consumption indicators for reflecting economic development are identified. The results show that there is a long-term equilibrium relationship between secondary industry electricity consumption, industrial electricity consumption and GDP. There is a constant or decreasing returns to scale between electricity consumption and GDP, and the demand for electricity consumption still needs to be met urgently.