Energy Efficiency

, Volume 11, Issue 6, pp 1541–1557 | Cite as

Electricity demand in industrial and service sectors in Taiwan

  • Yu-Wen Su
Original Article


The electricity demand in the industrial and service sectors in Taiwan is estimated using a panel dataset, covering 23 industries in the industrial and 9 in the service sectors from 1998 to 2015. Static and dynamic models are studied. Industries are reclassified based on the national accounts and the energy balance sheets. Estimated results indicate the price elasticity is − 0.14 in the short term and − 0.82 in the long term, while the income elasticity is 0.08 in the short term and 0.47 in the long term. The influence of cooling degree days was positive, and substitution effect of electricity with respect to petroleum was proven. In addition, the scenario analysis reveals the gap between the current situation and the policy target of electrical efficiency. This gap can be bridged by economic development and adjustment of industrial structure if Taiwan chooses to stick with low electricity prices.


Panel data model Price elasticity Income elasticity Electrical efficiency Industrial structure 

JEL classification

Q41 C23 



I thank the editor and six anonymous reviewers for constructive comments. The errors, idiocies, and inconsistencies remain my own.

Funding information

I thank the Bureau of Energy in Taiwan for funding this project.

Compliance with ethical standards

Conflict of interest

The author declares that she has no conflict of interest.


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Copyright information

© Springer Science+Business Media B.V., part of Springer Nature 2018
corrected publication March/2018

Authors and Affiliations

  1. 1.Industrial Economics and Knowledge CenterIndustrial Technology Research InstituteHsinchuTaiwan

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