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Determinants of Electricity Demand in Nonmetallic Mineral Products Industry: Evidence from a Comparative Study of Japan and China

by Gang Du 1 and Chuanwang Sun 2,*
1
Department of Business Management, Business School, East China Normal University, 500 Dongchuan Road, Shanghai 200241, China
2
Collaborative Innovation Center for Energy Economics and Energy Policy, School of Economics, Xiamen University, Xiamen 361005, China
*
Author to whom correspondence should be addressed.
Academic Editor: Andrew Kusiak
Sustainability 2015, 7(6), 7112-7136; https://doi.org/10.3390/su7067112
Received: 3 March 2015 / Revised: 21 May 2015 / Accepted: 27 May 2015 / Published: 2 June 2015
(This article belongs to the Section Energy Sustainability)
Electricity intensity is an important indicator for measuring production efficiency. A comparative study could offer a new perspective on investigating determinants of electricity demand. The Japanese non-metallic mineral products industry is chosen as the object for comparison considering its representative position in production efficiency. By adopting the cointegration model, this paper examines influencing factors of electricity demand in Japanese and Chinese non-metallic mineral products industries under the same framework. Results indicate that although economic growth and industrial development stages are different between the two countries, major factors that affect the sectoral energy consumption are the same. Specifically, economic growth and industrial activity contribute to the growth of sectoral electricity consumption, while R&D intensity, per capita productivity and electricity price are contributors to the decline of sectoral electricity consumption. Finally, in order to further investigate the development trend of sectoral electricity demand, future electricity consumption and conservation potential are predicted under different scenarios. Electricity demand of the Chinese non-metallic mineral products industry is predicted to be 680.53 TWh (terawatt-hours) in 2020 and the sectoral electricity conservation potentials are estimated to be 118.26 TWh and 216.25 TWh under the moderate and advanced electricity-saving scenarios, respectively. View Full-Text
Keywords: non-metallic mineral products industry; electricity demand; comparative study; cointegration method non-metallic mineral products industry; electricity demand; comparative study; cointegration method
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Du, G.; Sun, C. Determinants of Electricity Demand in Nonmetallic Mineral Products Industry: Evidence from a Comparative Study of Japan and China. Sustainability 2015, 7, 7112-7136.

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