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.
Similar content being viewed by others
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 %
References
Bernard NI (2015) Electricity consumption and economic growth in Nigeria: a revisit of the energy-growth debate. Energy Econ 51(9):166–176
Bianco V, Manca O, Nardini S (2009) Electricity consumption forecasting in Italy using linear regression models. Energy 34(9):1413–1421
Chandran VGR, Sharma S, Madhavan K (2010) Electricity consumption-growth nexus: the case of Malaysia. Energy Policy 38(1):606–612
Deng SH, Zhang J, Shen F, Guo H, Li YW, Xiao H (2014) Relationship between industry structures, household-number and energy consumption in China. Energy Resour B: Econ Plan Policy 9(4):325–333
Kaygusuz K (2007) Energy for sustainable development: key issues and challenges. Energy Sources Part B 2(1):245–251
Lam JC, Wan KKW, Cheung KL, Yang L (2008) Principal component analysis of electricity use in office buildings. Energy Build 40(5):828–836
Ledauphin S, Hanafi M, Qannari MEI (2004) Simplification and signification of principal components. Chemometr Intell Lab Syst 74(2):277–281
Lin BQ, Liu C (2016) Why is electricity consumption inconsistent with economic growth in China? Energy Policy 88(1):310–316
Mohammad S, Khorshed A (2016) Information and Communication Technology, electricity consumption and economic growth in OECD countries: a panel data analysis. Electr Power Energy Syst 76(3):185–193
Mohammadi-Ivatloo B, Zareipour H, Amjady N, Ehsan M (2013) Application of information-gap decision theory to risk-constrained self-scheduling of GenCos. IEEE Trans Power Syst 28(2):1093–1102
Mohanmmad S, Jeff G, IIhan O (2015) Is the long-run relationship between economic growth, electricity consumption, carbon dioxide emissions and financial development in Gulf Cooperation Council Countries robust? Renew Sustain Energy Rev 51(11):317–326
Ndiaye D, Gabriel K (2011) Principal component analysis of the electricity consumption in residential dwellings. Energy Build 43(2):446–453
Pao HT (2009) Forecast of electricity consumption and economic growth in Taiwan by state space modeling. Energy 34(11):1779–1791
Payne JE (2010) A survey of the electricity consumption-growth literature. Appl Energy 87(3):723–731
Richard FH, Jonathan GK (2015) Electricity consumption and Economic Growth: a new Relationship with Significant Consequences? Electr J 28(9):72–84
Sandra B, Elli J, Harrier B, Gareth P, Klara AC, David L (2015) Sociality and electricity in the United Kingdom: the influence of household dynamics on everyday consumption. Energy Res Soc Sci 9(3):98–106
Soroudi A, Afrasiab M (2012) Binary PSO-based dynamic multi-objective model for distributed generation planning under uncertainty. IET Renew Power Gener 6(2):67–78
Soroudi A, Ehsan M (2013) IGDT based robust decision making tool for DHOs in load procurement under severe uncertainty. IEEE Trans Smart Grid 4(2):886–895
Soroudi A, Caire R, Hadjsaid N, Ehsan M (2011) Probabilistic dynamic multi-objective model for renewable and non-renewable distributed generation planning. IET Gener Transm Distrib 11(5):1173–1182
The World Bank (2014) World development indicators. http://data.worldbank.org/country/china. Accessed 12 May 2016
Wang J, Ma GW, Hu YL, Guan YL, Dong XL (2013) Regional decomposition of an energy-saving target: the case of Sichuan province in China. Energy Sources Part B 8(3):245–251
Zhang J, Deng SH, Shen F, Yang XY, Liu GD, Guo H (2011) Modeling the relationship between energy consumption and economy development in China. Energy 36(7):4227–4234
Zhang J, Wang CM, Liu L, Guo H, Liu GD, Li YW, Deng SH (2014) Investigation of carbon dioxide emission in China by primary component analysis. Sci Total Environ 472(15):239–247
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
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
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10098-016-1225-9