Abstract
In Chap. 11, the E-GDP function for selected countries did not involve any sequence of electricity price. How does electricity price impact electricity consumption? What other factors affect electricity demand? In this chapter, we will discover the major factors that affect electricity demand and discover whether price is the only indicator to electricity consumption. We argue that there are three common impact factors for electricity consumption. First, despite price is not the only determinant, it is only a factor to affect electricity consumption. Second, technology improvements can be a strong factor. Under the process of electrification, advanced technologies can result in higher electricity demand. Third, the economic growth and economic structure will show the industrial production and electricity consumption; they are also the factors that have to be considered on electricity demand. It can be shown that there are many factors which will affect the electricity demand. The price of electricity is only one of these factors, but it is not the main factor. The impact of electricity price on electricity consumption is quite limited in long run. Other impact factors also play important roles on electricity demand. This chapter will study the influences of the factors on the industrial electricity consumption, such as electricity price, technology innovation and improvement, and economic structure change. Case studies for France, Germany, Italy, Japan, Norway, the United Kingdom, and the United States have been showed in this chapter.
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