Study On The Relationship Between The Electricity Consumption And Economic Growth In China

Economy can not be developed without energy. As the basic energy form,electricity is used within our national economy extensively. Our economy can not bedeveloped without the development of electricity, and the electricity sector can’t beimproved without the development of economy, too. Our national economy will besuffocated seriously when the power is short-handed. Powers sector plays animportant role as the basic industry. The both effect each other, and motivate eachother.There always are economic loesses because of power short-handed in the courseof development of our country. How to control the speed of power sector and how tocarry out power demand side management(DSM) in order to avoid economy lossesbecause of power short-handed, is the problem we need to solve which key point isknowing well the relationship between power development and economydevelopment. Only if solving this problem, we can make scientific development planand solve the problem of discordance between power development and economydevelopment.This article adopt time series analysis methods of econometrics, objecting ourpower sector, discussing the relationship between electric power consumption andeconomic growth firstly. The result shows that there is a long-term relationshipbetween electric power consumption and economic growth. Secondly, we study thespeed of power growth and economic growth on the basis of power consumptionelasticity coefficient. The results shows that the undulatory property and cyclicity ofpower development, and the cyclicity is about ten to thirteen years. Thirdly, we foundthat the cointegration relationship between industrial value added and industrialpower consumption of secondary sector and tertiary sector through cointegrationanalysis. And finally, through input-output analysis method, we make positiveanalysis stimulus and impetus of power sector in national economics. The result shows that the stimulus and impetus of power sector is greater than other sectors, andthe impetus is greater than stimulus in power sector inside.Through quantitative analysis of relationship between electric power andeconomic growth, not only we can forecast the future demand of electricity and itsdevelopment, but also know the importance of power sector in our national economyand have an realistic significance to the construction of it.