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What is Currently Driving the Growth of China’s Household Electricity Consumption? A Clustering and Decomposition Analysis

1
Department of Economics and Management, North China Electric Power University, Baoding 071003, China
2
School of Chemical Engineering, University of Birmingham, Edgbaston, B15 2TT Birmingham, UK
*
Author to whom correspondence should be addressed.
Sustainability 2019, 11(17), 4648; https://doi.org/10.3390/su11174648
Received: 7 August 2019 / Revised: 22 August 2019 / Accepted: 25 August 2019 / Published: 26 August 2019
(This article belongs to the Section Energy Sustainability)
The rapid growth of household electricity consumption is threatening the sustainable development of China’s economy and environment because of its impacts on the operation efficiency of the electric power system. To recognize the driving factors of the consumption growth and offer policy implications, based on the consumption-related data of 2015 and 2016, this research used the rank sum ratio (RSR) method to divide China’s 30 provinces into 5 groups and a logarithmic mean Divisia index (LMDI) algorithm to decompose the composition growth of each group into the quantitative contribution of each driving factor. The following conclusions were drawn from the empirical analysis. (1) The Yangtze basin is the most vigorous region of consumption growth and should be principally monitored. (2) Climate conditions have a remarkable impact on consumption growth and should be a key consideration when making differentiated household electricity policies. (3) The rebound effect has already appeared in a few of the most developed regions. Electricity price is an effective measure in dealing with this effect. (4) The improvement of the income level is the most important driving factor for consumption growth. (5) For provinces with high growth vitality, the change in the burden level of electricity expenditure prompts consumption growth. However, for provinces with low growth vitality, the situations are opposite. (6) The impacts of electricity price and population on consumption growth are negligible. View Full-Text
Keywords: household electricity consumption; driving factor; RSR clustering; LMDI decomposition; China household electricity consumption; driving factor; RSR clustering; LMDI decomposition; China
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MDPI and ACS Style

Meng, M.; Wu, S.; Zhou, J.; Wang, X. What is Currently Driving the Growth of China’s Household Electricity Consumption? A Clustering and Decomposition Analysis. Sustainability 2019, 11, 4648. https://doi.org/10.3390/su11174648

AMA Style

Meng M, Wu S, Zhou J, Wang X. What is Currently Driving the Growth of China’s Household Electricity Consumption? A Clustering and Decomposition Analysis. Sustainability. 2019; 11(17):4648. https://doi.org/10.3390/su11174648

Chicago/Turabian Style

Meng, Ming, Shucheng Wu, Jin Zhou, and Xinfang Wang. 2019. "What is Currently Driving the Growth of China’s Household Electricity Consumption? A Clustering and Decomposition Analysis" Sustainability 11, no. 17: 4648. https://doi.org/10.3390/su11174648

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