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Modeling electricity demand in China based on macro and micro-level methods

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  • Chen, Shaogang
  • Wang, Zizhe

Abstract

This study analyzes residential electricity demand in Chengdu from both micro and macro-level perspectives. Household survey data is used at the micro level to estimate demand functions and capture heterogeneity via corresponding random and fixed effect models and quantile regression. At the macro level, the Autoregressive Distributed Lag (ARDL) cointegration method examines the relationships between electricity demand, gross domestic product (GDP), and prices. Results show significant differences in price and income elasticity across households, and economic growth drives energy consumption. Combining macro and micro-level analyses helps better understand demand patterns and supports more effective policy decisions.

Suggested Citation

  • Chen, Shaogang & Wang, Zizhe, 2025. "Modeling electricity demand in China based on macro and micro-level methods," Utilities Policy, Elsevier, vol. 96(C).
    • Handle: RePEc:eee:juipol:v:96:y:2025:i:c:s0957178725001092
    DOI: 10.1016/j.jup.2025.101994
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