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Long- and short-run elasticities of residential electricity consumption in China: a partial adjustment model with panel data

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  • Haitao Yin
  • Hui Zhou
  • Kai Zhu

Abstract

While it has stabilized in developed world, the per capita residential electricity consumption (REC) in developing countries such as China is growing very rapidly and this trend is very likely to continue. Built upon a provincial level panel data, we employ a partial adjustment model to investigate the future trend of REC in China and factors that affect it. We estimate the income and price short-term and long-term elasticities for urban and rural China, respectively and compare the results with REC studies in other countries or regions. The findings provide useful information to understand how the REC would grow in China as household income increases and how effective that price could be as an intervention tool.

Suggested Citation

  • Haitao Yin & Hui Zhou & Kai Zhu, 2016. "Long- and short-run elasticities of residential electricity consumption in China: a partial adjustment model with panel data," Applied Economics, Taylor & Francis Journals, vol. 48(28), pages 2587-2599, June.
  • Handle: RePEc:taf:applec:v:48:y:2016:i:28:p:2587-2599
    DOI: 10.1080/00036846.2015.1125436
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