http://dx.doi.org/10.1016/j.enpol.2012.12.015">
 

Document Type

Journal Article

Department/Unit

Department of Economics

Title

How much have electricity shortages hampered China's GDP growth?

Language

English

Abstract

Based on an econometric analysis of the annual growth data for China's GDP and electricity generation from 1953 to 2010, we find that electricity generation growth Granger causes GDP growth, but not vice versa. We also find that the GDP elasticity of electricity generation is about 0.6, implying that a 1% increase in China's electricity generation growth would increase GDP growth by 0.6%. While Deng's reform raised China's GDP growth rate by about 5% per year, it did not alter the GDP elasticity of electricity generation. Hence, an obvious strategy to promote China's economic growth would be accelerating electricity generation expansion. Rapidly adding thermal generation units, however, could have large-scale, adverse environmental impacts. We therefore support China's 2011 five-year plan, which calls for expanding investments in renewable energy, conservation and energy efficiency as well as improving China's integrated electricity planning and cost-based pricing decisions. © 2012 Elsevier Ltd.

Keywords

China's electricity policy, Electricity shortage, GDP growth

Publication Date

2013

Source Publication Title

Energy Policy

Volume

55

Start Page

369

End Page

373

Publisher

Elsevier

ISSN (print)

03014215

This document is currently not available here.

Share

COinS