Electricity Consumption Growth Research Articles

Impact of globalization, institutional quality, economic growth, electricity and renewable energy consumption on Carbon Dioxide Emission in OECD countries.

This research for the first time examines the influence of the financial development, stock market, globalization, institutional quality, economic growth, electricity, and renewable energy consumption on carbon dioxide emission from 1985 to 2018 in thirty-six (OECD) countries. Cointegrations exist in the used variables based on the examined findings of the Kao, Westerlund, and Pedroni cointegration. Findings of the pooled mean group (PMG) indicate that renewable energy consumption, globalization, and institutional quality assist to reduce the carbon dioxide emission that improve the environment while financial development, stock market, electricity consumption, and economic growth cause to increase the carbon dioxide emission in OECD countries both in the long and in the short run. To reduce carbon dioxide emission, important policy implications are suggested for OECD countries.

Energy efficiency improvements and industry transition: An analysis of China's electricity consumption

Limited empirical evidence exists on the role of electricity intensity of residential income and disposable income in China's electricity consumption. Furthermore, little attention has been paid to the variation in the growth rate of electricity consumption. We develop a Logarithmic Mean Divisia Index model to examine factors that affect electricity consumption and whether there are structural changes impacting electricity consumption. The drivers of slowing electricity consumption in China between 2007 and 2019 are quantified. We find that China's electricity consumption is closely associated with economic growth during the current New Normal period 2013–2019. Decelerated electricity consumption rate is linked to adjustments in industrial structure and a decline in energy intensity. Decreasing the electricity intensity of residential income also contributed to the decelerated rate. In 2014 there was a clear structural break in the growth rate of China's electricity consumption. We conclude that the decline in the electricity consumption growth rate is structural, and the low average annual growth rate will be sustained if nascent energy efficiency improvements and industry transition continue. Therefore, both electricity consumption and its influencing factors should be monitored continuously. Policies should be aimed at promoting energy efficiency and optimizing industrial structure.

ELECTRICITY CONSUMPTION, TRADE OPENNESS AND ECONOMIC GROWTH IN DEVELOPING COUNTRIES: A DISAGGREGATED APPROACH

This study examines the relationship between electricity consumption, trade openness and economic growth in 25 African countries during 1980–2016. It disaggregates electricity into renewable and non-renewable and disaggregates trade into exports and imports. It employs cointegration and Granger causality techniques that enable us to determine both joint and individual causality, as well as account for individual heterogeneity and cross-sectional dependence. It also uses the variance decompositions (VDs) and impulse response functions (IRFs). This study shows a short-run and long-run joint causality from electricity and trade to growth, as well as a short-run and long-run joint causality from trade and growth to electricity. Besides, the Dumitrescu–Hurlin Granger non-causality technique shows a bidirectional causality between electricity and growth and between trade and growth but a unidirectional causality from electricity to trade. It also reveals the causal relationships from exports, imports, renewable and non-renewable electricity to growth. This study implies that electricity consumption and trade openness stimulate growth, while the latter also determines electricity consumption and trade openness. Based on the findings, we recommend some policy options.

An Empirical Analysis of the Energy-Growth Hypothesis for Nigeria (1991 – 2019)

Energy consumption is an important indicator of economic modernization and in general the more developed a nation, the more their level of consumption. Improved productivity can unlock development and this is enhanced by availability and accessibility of electricity supply to the manufacturing and industrial sector. Hence this study analyzes the impact of electricity consumed by only the manufacturing and industrial sector; excluding the consumption for domestic use so as to test the energy-growth hypothesis for Nigeria over the period 1981 to 2019. The study also included the impact of electricity consumption on manufacturing output. The analysis was done using OLS techniques and ECM. The results revealed a positive significant relationship between manufacturing output and electricity consumption as well as an inverse relationship between electricity consumption and economic growth in the long run. Granger causality was also done and a unidirectional causality was found from economic growth to electricity consumption; showing support for the conservation hypothesis of the Energy-growth hypothesis. Unidirectional causality was also found from manufacturing to electricity consumption as well. The study recommends the need to develop huge infrastructure for adequate supply of electricity because as the economy grows the need for electricity consumption will increase. DOI: 10.7176/JETP/11-5-03 Publication date: October 31 st 2021

AN ECONOMIC ANAYSIS OF GULBARGA ELECTRICITY SUPPLY COMPANY (GESCOM) IN KARNATAKA

Electricity is a key infrastructural input in the modern economy which increasingly aids in achieving a higher standard of living and rapid economic growth. Its inadequacy or, absence paralyses the functioning of all sectors and leads to economic losses. There is close association between electricity consumption and economic growth. The present study attempts to make the economic analysis of Gulbarga Electricity Supply Company (GESCOM). The study is based on primary data. The data were collected from selected talukas, villages and the sample domestic consumers’ in the study area. Total 350 domestic consumers’ were selected randomly by adopting a multi stage stratified random sampling for each village. The data analysed with the help of suitable statistical techniques like simple percentage, average, ratio etc. The study finds considerable awareness among the consumers and has they understand the importance of electricity and created the sense of proud about its functioning. The empirical results, further reveal that the practical problems of power cut in the regions. KEYWORDS: Electricity, Domestic Consumers, Billing, Complaint and GESCOM.

ASSESSMENT OF THE PROSPECT FOR THE USE OF RENEWABLE ENERGY SOURCES IN THE WORLD AND KAZAKHSTAN

The world energy industry today is at a new stage of development, which is characterized by the strengthening of integration processes, the development of new
 technologies in the field of extraction and production of energy resources. The energy sector of Kazakhstan was designed with the understanding that it was part of the energy sector of the Soviet Union. Today Kazakhstan follows international development trends in the field of energy. To make a reliable forecast of the Kazakhstani energy sector, it is necessary to look at the global processes in the development of the world energy industry. There are several organizations that have this information. These are the International Energy Agency (IEA), the UN, the World Bank, large-scale international companies, etc. In forecasting energy consumption in Kazakhstan, as part of the Eurasian Economic Union (EAEU), it is important to look at the forecasts for the EAEU member countries. This article provides basic information on forecasting the growth of electricity consumption in the world and in Kazakhstan, based on various sources. It also provides a comparative analysis of the use of various sources of electrical energy. A detailed analysis of the energy sector of Kazakhstan and the prospects for the use of renewable energy in Kazakhstan are considered.

Renewable electricity and economic growth relationship in the long run: Panel data econometric evidence from the OECD

Renewable electricity is a pillar of the sustainability transition being pursued through climate and energy policy strategies, and the European Green Deal represents a potential investment plan for this new phase of development. Economic growth can be influenced by the expansion of renewable electricity consumption, but the nature of their relationship is ambiguous and depends on various economic and policy factors. This paper investigates the long-run relationship between renewable electricity consumption and economic growth in selected countries over the period 1971–2015 using econometric panel data techniques that specifically address cross-country heterogeneity and cross-sectional dependence. Our findings suggest that, on average, there is a significant positive long-term relationship between renewable electricity consumption and economic growth, although Granger causality is not detected. Regarding causality, we do find per capita economic growth to be a causal factor for total electricity consumption and fossil-fuel based electricity consumption.

The Asymmetric Impact of Oil Price and Electricity Consumption on Economic Growth: Evidence from Nigeria

Abstract The study examines the asymmetric impact of oil price and electricity consumption on economic growth in Nigeria between 1981 and 2018 using the Non-Linear Autoregressive Distributed Lag (NARDL) model. Results reveal that falling and increasing oil prices as well as gross capital formation affect economic growth in Nigeria negatively and significantly in the short-run, while electricity consumption affects economic growth positively and significantly in the short-run. In the long-run, the impact on economic growth of negative changes in oil price is negative and insignificant, while positive changes in oil price have a positive but insignificant impact on economic growth. The impact on the economic growth of electricity consumption remains positive but insignificant while that of gross capital formation is positive and significant. The results suggest that both in the short and the long run positive changes in oil price have greater impact on the economic growth than negative oil price changes. Capital formation is a significant determinant of Nigerian economic growth both in the short and the long run.

Research on the driving effect of production electricity consumption changes in the Yangtze River Economic Zone - Based on regional and industrial perspectives

In this study, the LMDI method is used to decompose the production power consumption changes of the Yangtze River Economic Zone into an advanced technology effect, structural effect, income effect, and population effect. The regional and industry differences in the driving effect of electricity consumption change are also investigated. From the perspective of time differences, the progress of power-saving technology is the main factor restraining the growth of electricity consumption; whereas, economic growth, industry structure adjustment, and population size adjustment promote the growth of electricity consumption; and the other three influencing factors, in turn, decrease. From the perspective of regional differences, regional electricity consumption varies significantly, and various regions have great room for improvement in industry structure. Regional population affects electricity consumption from two aspects: absolute population quantity change and population mobility. From the perspective of industry differences, electricity consumption varies significantly among industries and is mainly reflected in the effect of technological progress and structural effects. As a result, control measures on electricity consumption in the Yangtze River Economic Zone should focus on the promotion of power-saving technology and industry structure adjustment.

Does any nexus between electricity consumption and economic growth exist? Evidence from Haryana using VAR model

Purpose In the fast-changing technological environment, electricity is the essence of the world economy and a significant means for all the modern world’s possessions. The ongoing economic downturn focuses on energy’s role in the economy. This study aims to explore the nexuses between per capita electricity usage and per capita state gross domestic product (SGDP) in Haryana, India. Design/methodology/approach The statistics from 1989 to 2015 have been analyzed using Johansen cointegration, vector autoregression and paired Granger-causality test. Findings The Granger causality test results show that a long-run association is absent. A short-run unidirectional relationship runs from per capita SGDP to per capita electricity usage. Practical implications As a policy suggestion, the policymakers may encourage energy conservation measures and renewable energy sources to lead the country’s sustainable energy supply. Moreover, Haryana can increase its influence in this sector and enter rapidly in the growing markets worldwide by stimulating the production and adoption of digital solutions for energy efficiency. Originality/value To the best of the author’s awareness, this research is one of its nature regarding systematically analyzing electricity usage and economic growth relationship in Haryana.

The dynamics of Indian energy mix: a two-phase analysis

PurposeThe Indian power sector is dominated by coal. Environmental awareness and advances in techno-economic front have led to a slow but steady shift towards greener alternatives. The distributions of both fossil fuel resources and renewable energy potential are not uniform across the states. Paper attempts to answer how the states are performing in the sector and how the renewable energy and conventional resources are affecting the dynamics.Design/methodology/approachThe authors employ a two-stage data envelopment analysis (DEA) to rank the performance of Indian states in the power sector. Multi-stage analysis opens up the DEA black-box through disaggregating power sector in two logical sub-sectors. The performance is evaluated from the point-of-view of policy formulating and implementing agencies. Further, an econometric analysis using seemingly unrelated regression equations (SURE) is conducted to estimate the determinants of total and industrial per-capita electricity consumption.FindingsEfficiency scores obtained from the first phase of analysis happens to be a significant explanatory variable for power consumption. The growth in electricity consumption, which is necessary for economic wellbeing, is positively affected by both renewable and non-renewable sources; but conventional sources have a larger impact on per-capita consumption. Yet, the share of renewables in the energy mix has positive elasticity. Hence, the findings are encouraging, because development in storage technologies, falling costs and policy interventions are poised to give further impetus to renewable sources.Originality/valueThe study is one of the very few where entire spectrum of the Indian power sector is evaluated from efficiency perspective. Further, the second phase analysis gives additional relevant insights on the sector.

Detecting Financial Misreporting with Real Production Activity: Evidence from an Electricity Consumption Analysis*

ABSTRACTThis study examines whether a real production activity measure, firm‐level electricity consumption growth, is useful in detecting firm financial misreporting. Identifying proxies for a firm's underlying financial performance that are not a function of the firm's accounting system is essential for detection of misreporting. We propose that the difference between revenue growth and electricity consumption growth (i.e., growth wedge (GW)) is a useful signal of financial misreporting. Using electricity consumption data for Korean firms from 2006 to 2014, we find that the GW is positively associated with discretionary revenues and accruals and the likelihood of financial misreporting as proxied by accounting restatements, qualified audit opinions, and regulatory enforcement actions. The GW provides incremental information over firm characteristics and earnings management signals examined by prior research. Our findings are robust to a battery of additional tests, including within‐firm and industry comparisons that do not require access to cross‐sectional firm‐level electricity data. Overall, our study documents new evidence on the role of a real production activity measure from an independent reporting entity in detecting financial misreporting. Our evidence speaks to the potential usefulness of real activity metrics in forensic economics.

Nexus between household energy consumption and economic growth in Bangladesh (1975–2018)

Bangladesh, a climate-vulnerable country, has taken initiatives to reduce greenhouse gas emissions. The country's most significant challenge to achieving that goal is keeping economic growth even after ensuring commercial and residential energy for its people, primarily dependent on fossil fuel. This research investigates the residential electricity and gas consumption and its effect on Bangladesh's economic growth with the data period 1975–2018. Household energy consumption is one of the critical factors for sustainable economic growth, although it is not directly converted to the country's manufacturing output. Autoregressive Distributed Lag (ARDL) bound testing approach has been used due to the robust and better performance in this study with the smaller size of the sample. The country's labor-intensive economy has been found with a unidirectional relationship from household electricity consumption and population growth, which stresses the significance of ensuring electricity for all. Therefore, the country cannot take the energy conservation policy right now as it could obstruct its growth. However, energy sources might be replaced with renewable energies to meet the country's residential energy demand.

The Forecasting of Electrical Energy Consumption in Morocco with an Autoregressive Integrated Moving Average Approach

The national demand for primary energy has experienced an average increase of almost 5% in recent years, driven by the growth in electricity consumption, which grew by an average of 6% per year between 2003 and 2017, by virtue of the almost generalization of rural electrification and the dynamism of our economy and especially the policy of major works in infrastructure, industry, agriculture, tourism, and social housing. In fact, forecasting the demand for electrical energy remains a controversial issue in the development of the electricity grid and energy management. The ARIMA (1, 1, 1) model is applied to model electrical energy consumption for the annual period from 1971 to 2020. The same data are also used to predicting for 2021–2030 in order to verify the adequacy of the model and to provide information on the state of energy demand in Morocco in the future. The main results indicate an upward trend in electrical energy consumption by the end of 2030, with electricity consumption expected to be in the range of 2039639.09–53589.00 GWh per year.

Time Distribution Simulation of Household Power Load Based on Travel Chains and Monte Carlo–A Study of Beijing in Summer

In recent years, China’s residential electricity consumption has continued to grow at high speed, and its contribution to the growth of the total electricity consumption has become more prominent. The peak-to-valley gap is also gradually increasing, which reduces the efficiency of electricity—an increasingly important terminal energy form. The resident travel chain is a major influencing factor of residents’ electricity consumption, and it is of great significance to dig deeper into the mechanism of its influence on residents’ electricity consumption behavior. In this paper, the time distribution model of household power load in summer in Beijing is constructed by comprehensively considering the difference of travel chain, electricity consumption behavior, and load level. The Monte Carlo simulation method is introduced for the simulation of the model. According to the results, both household type and temperature have a significant impact on the peak load, while the difference in the choice of mode of transportations does not. It is also found that the household appliance with the most potential for regulation is the air conditioning, followed by the water heater, which where regulation and optimization should be mainly carried out.

The nexus between industrial growth and electricity consumption in China – New evidence from a quantile-on-quantile approach

The inconsistency of growth rate in industrial and its electricity consumption in China has attracted the global attention. This study uses a novel quantile-on-quantile approach to reveal the complicated and seemly inconsistent relationship between China's industrial growth and its electricity consumption from 1995 to 2017. Empirical results show: (1) generally, a positive correlation exists between industrial growth and its electricity consumption. However, the strength of that correlation depends highly on the level of industrial electricity consumption and industrial development, thereby causing variations in the relationships at different periods and regions. (2) During the middle period of industrialization, a strong relationship is observed. Then, it gradually weakened with the steady growth of industry and high electricity consumption. (3) From a regional perspective, the positive correlation in eastern China changed from strong to weak, while a “high-low-high” trend transpired in northeastern China. The relationship was stable in central China during the sample period. (4) The main reason for the above results is the different characteristics of the industrial transfer and industrial structure upgrading across regions.

Optimal Sizing and Placement of Capacitor Banks in Distribution Networks Using a Genetic Algorithm

Nowadays, response to electricity consumption growth is mainly supported by efficiency; therefore, this is the new main goal in the development of electric distribution networks, which must fully comply with the system’s constraints. In recent decades, the issue of independent reactive power services, including the optimal placement of capacitors in the grid due to the restructuring of the electricity industry and the creation of a competitive electricity market, has received attention from related companies. In this context, a genetic algorithm is proposed for optimal planning of capacitor banks. A case study derived from a real network, considering the application of suitable daily profiles for loads and generators, to obtain a better representation of the electrical conditions, is discussed in the present paper. The results confirmed that some placement solutions can be obtained with a good compromise between costs and benefits; the adopted benefits are energy losses and power factor infringements, taking into account the network technical limits. The feasibility and effectiveness of the proposed algorithm for optimal placement and sizing of capacitor banks in distribution systems, with the definition of a suitable control pattern, have been proved.

Closing the void in energy planning modeling: Integrating local realities

Closing the void in energy planning modeling: Integrating local realities

The Impact of the COVID-19 Pandemic on Electricity Consumption and Economic Growth in Romania

This paper analyzes the impact of the COVID-19 pandemic on economic growth and electricity consumption and investigates the hypothesis of the influence of this consumption on the gross domestic product (GDP) for Romania. Using time series on monthly electricity consumption and quarterly GDP and a multi-linear regression model, we performed an analysis of the evolution of these indicators for 2007–2020, a comparison between their behavior during the financial crisis vs. COVID-19 crisis, and empirically explore the relationships between GDP and electricity consumption or some of its components. The results of the analysis confirm that the shock of declining activity due to the COVID-19 pandemic had a severe negative impact on electric energy consumption and GDP in the first half of 2020, followed by a slight recovery. By using a linear regression model, long-term relationships between GDP and domestic and non-household electricity consumptions were found. The empirically estimated elasticity coefficients confirm the more important impact of non-household electricity consumption on GDP compared to the one of domestic electricity consumption. In the context of the COVID-19 pandemic, the results of the study could be useful for optimizing energy and economic growth policies at the national and European levels.

The effects of international tourism, electricity consumption, and economic growth on CO2 emissions in North Africa.

This study examines the influence of tourism, economic growth, and electricity consumption on carbon dioxide (CO2) emission in the presence of the Environmental Kuznets Curve (EKC) model for a panel of four countries of North Africa, namely, Morocco, Algeria, Tunisia, and Egypt, over the period 1980-2014. Since we find the existence of cross-sectional dependence, we apply the unit root tests of CIPS and CADF, the Westerlund cointegration test as well as the dynamic seemingly unrelated regression (DSUR), and the Dumitrescu-Hurlin Granger causality test. The empirical results show that electricity consumption has a positive effect on CO2 emissions. In contrast, tourism has a negative relationship with CO2 emissions, implying improvement in the quality of the environment. The conclusions confirm the hypothesis of the environmental Kuznets curve for the countries in our sample. In addition, the causality test indicates the following results: (i) a one-way causality from real income, electricity consumption, and tourism to carbon emissions. (ii) A one-way causality running from electricity consumption to real income and tourist arrivals. (iii) A two-way causality between real income and tourism development. Based on these empirical results, several policy recommendations are proposed for the four countries of North Africa.