A Co-Integration Analysis Between Electricity Consumption and Economic Development in Hebei Province

Electricity is a convenient and clean energy which can provide strong support for the development of all walks of life. The power development should maintain coordination with the regional economic development, in which power development may advance sometimes. Hebei province is a typical resource-based area in China, and its power consumption is closely related to economic development, which makes it important to study the relationship between electricity and economic development in Hebei. In order to select the economic factors affecting electricity demand, the gray correlation analysis is used to analyse the correlation among different factors. And then, a long-term equilibrium model between electricity consumption and economic factors is proposed through co-integration analysis. The analysis result showed that the electricity consumption, GDP, the level of residential consumption, efficiency levels and economic structures have a long-run equilibrium relationship in Hebei Province, in which the economic structure has the strongest impact on the electricity consumption, followed by GDP, energy consumption intensity and the residential consumption level. Currently, the impact of the economic restructuring on electricity demand in Hebei cannot be overlooked. Furthermore, this model can be used to give a reference to Hebei Electric Power Planning.