Influencing factors on electricity demand in Chinese nonmetallic mineral products industry: A quantile perspective

Abstract

Abstract Chinese nonmetallic mineral products industry is one of the largest electricity consumer in China and has a large impact on overall electricity consumption in China. This paper examines the impact of economic variables on the demand for electricity in Chinese nonmetallic mineral products industry where economic growth, sectoral value added per worker, sectoral R&D intensity, and energy price were utilized to analyze sectoral electricity consumption, with an application of quantile model. The paper’s estimates unveiled the varying effects of economic variables across the spectrum of sectoral electricity consumption where the coefficient of economic growth was positive and significant across all quantiles, while sectoral value-added per worker had both positive and negative significant coefficients. An increase in income level and sectoral value added per worker will increase the electricity consumed by the industry, however, the latter will also enhance a decreasing trend in few regions across China and did not influence high energy efficiency but rather enhanced the production of additional outputs, while sectoral R&D intensity and energy price will ensure a substantial decrease in sectoral electricity consumption with the latter having a greater impact. Increase in investment for sectoral R&D intensity will boost technological advancement and is recommended as a cornerstone to ensuring decline in sectoral energy consumption that will buttress sectoral value added per worker coupled with a robust energy price.