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Taiwan’s Electricity Demand Under the COVID-19 and Supply Chain Disruption

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  • Ya-Chi Lin

Abstract

Our research aims to find the alteration in electricity consumption during supply chain disturbance following the COVID-19 pandemic, while seeking to elucidate the island-wide power blackout in Taiwan in May 2021. The inquiries addressed are as follows: initially, the income elasticity of electricity consumption decreases over time. We present evidence indicating a decoupling between electricity consumption and GDP, linked to higher overseas production ratio of export orders being produced. Secondly, as a result of the supply chain disruption, the income elasticity of electricity consumption escalates, and Taiwan experiences GDP growth. Electricity consumption increases rise through both channels. Lastly, utilizing a nonlinear model for prediction yields more accurate projections, potentially averting power outages.

Suggested Citation

  • Ya-Chi Lin, 2024. "Taiwan’s Electricity Demand Under the COVID-19 and Supply Chain Disruption," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 60(4), pages 688-703, March.
    • Handle: RePEc:mes:emfitr:v:60:y:2024:i:4:p:688-703
    DOI: 10.1080/1540496X.2023.2247141
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