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Decomposition of electricity consumption in China by primary component analysis

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Abstract

The empirical relationship between electricity consumption and gross domestic product, population, the product of primary industry, second industry, and tertiary industry are investigated. The strong multicollinearity among EC’s affecting factors does not meet the criteria of the ordinary least square regression (OLS) regression model. Principle component analysis is used to eliminate multicollinearity. Three principle components with no multicollinearity can explain 99.34 % of affecting factors’ variance. The three principle components seemed as independent, and EC seemed as dependent variables when OLS regression is employed. The results show that: gross domestic product, primary industrial production value, second industrial production value, and tertiary industrial production value codetermined the trend of electricity consumption, while the proportion of primary industrial production value, second industrial production value, and tertiary industrial production value and population codetermined the starting point and fluctuation of electricity consumption; the economic scale is the mainly affecting factors on electricity consumption; as some parts of electricity consumed by primary industry are not included in the state grid, there is an illusion that the primary industry can produce electricity.

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Abbreviations

AF i :

The affecting factors of EC

A (AF i ):

The average value of AF i

CEC j :

The calculated EC in year j, its unit is TWh

EC :

The electricity consumption

EC j :

The EC in year j, its unit is TWh

EC PIPV :

The EC which influence by PIPV, its unit is TWh

EC PIPVP :

The EC which influence by PIPVP, its unit is TWh

EC SIPV :

The EC which influence by SIPV, its unit is TWh

EC SIPVP :

The EC which influence by SIPVP, its unit is TWh

EC TIPV :

The EC which influence by TIPV, its unit is TWh

EC TPIVP :

The EC which influence by TIPVP, its unit is TWh

EC P :

The EC which influence by P, its unit is TWh

EC GDP :

The EC which influence by GDP, its unit is TWh

GDP :

Gross domestic product, its unit is billion $

GW:

Giga Watt

MBE :

The mean bias error

OLS:

Ordinary least square regression

P :

Population, its unit is million people

PC k :

The kth principal component

PIPV :

Primary industrial production value, the primary industry includes farming, forestry, animal husbandry, fishery and water conservancy. Its unit is billion $

PIPVP :

Primary industrial production value proportion, its unit is  %

REC j :

The reality EC in year j

RMBE :

The root mean square error

SAF i :

The standardization of AF i , which is used for principal component analysis

SD (AF i ):

The standard deviation of AF i

SIPV :

Second industrial production value, second industry includes mining, manufacturing, electric power, gas and water, and construction. Its unit is billion $

SIPVP :

Second industrial production value proportion, its unit is  %

SEC :

The standardization of EC

TIPV :

Tertiary industrial production value, tertiary industry includes transportation, storage, post and telecommunication services, wholesale, retail trade and catering services, residential consumption, and others. Its unit is billion $

TIPVP :

Tertiary industrial production value proportion, its unit is  %

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Wang, Y., Zhang, Jm. & Guo, H. Decomposition of electricity consumption in China by primary component analysis. Clean Techn Environ Policy 18, 2533–2540 (2016). https://doi.org/10.1007/s10098-016-1225-9

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