The impact of relative energy prices on industrial energy consumption in China: a consideration of inflation costs

Abstract

Rapidly changing relative energy prices (R.E.P.) have put pressure on global markets all over the world. Even economic factors must have a high degree of self-sufficiency related to the R.E.P. and increasing consumption and its production costs in consumer sectors of China. This research is based on R.E.P. impact on the industrial energy consumption (E.C.) of the Chinese economy. The key dependent and independent variables employed for this purpose were R.E.P.s, consumption price index (C.P.I.), inflation expenses, and so on. The R-square test between R.E.P.s and industrial consumption sectors (C.S.), f-statistical analysis, graphical analysis, and a summary of the Model and its analysis were utilised for this aim. Results run from the P.L.S. software and data collected from the World Bank, and world indicators also collect data from different websites. Data form is secondary and is based-on frequency panel data for 1990 to 2019. Results concluded that the impact of R.E.P.s is fast growing on the E.C. of China and is positively related with the consumer prices index. The contribution of this research is the comprehensive review of the existing and potential markets and services. The assistance can be mainly found in the study on the distribution network reliability service. The change in energy policies considering the different countries must be highly changing on imported energy which occurs high self-sufficiently. This examination of R.E.P.s and index relates to China. The results indicate a significant impact between industry E.C. and R.E.P.s. Therefore, this research is more reliable due to the literature and enhances the knowledge related to the study of relative consumption energy prices in energy industries.