LMDI decomposition analysis of total electricity consumption growth in Hunan province

Abstract

In the past decade, as an important driving force of economic growth, the China’s electricity consumption growth rate has been decoupled from GDP growth rate. The economic reasons behind this abnormal phenomenon are worthy of further study. Based on the LMDI method, this paper built a model to decompose the total electricity consumption in Hunan province from 2010 to 2017 from the industrial and residential perspective. The results showed that: integrally, scale effect was the main driving factor of electricity consumption growth, intensity effect was the main inhibiting factor, and structure effect had no obvious influence; there are significant differences between the results of industrial and residential sectors, for the industry, the productive consumption intensity effect was the most significant factor that inhibited the growth of electricity consumption, while all the effects of residential sector were shown as promotion, and the increase of electricity consumption in the residential sector played a key role in the growth rate of electricity consumption in Hunan province.

Prospects of Natural Gas Consumption using LMDI-STIRPAT-PLSR Framework

“…Methods discussed above only study those factors which influence natural gas consumption and cannot evaluate the internal structural effects and energy substitution effects. In this study, energy substitution effects are not ignored by using the Logarithmic Mean Division Index (LMDI) method, this technique has been used for finding the factors that internally affect the energy consumption (Qi et al, 2016;Winyuchakrit and Limmeechokchai, 2016;Hu et al, 2021). The increasing energy consumption due to urbanization in Pakistan (Mraihi and Abid, 2013), for energy consumption in China (Wu and Xu, 2014), for energy consumption in the manufacturing industry of China (Zhang et al, 2011) and the sectorial energy consumption can also be examined by this method (Shahbaz et al, 2017).…”