The Chinese electricity industry: supply capacity and its determinants with reference to OECD countries

Abstract

The paper takes two-stage estimation to investigate the direct and indirect determinants of the capacity of power supply in China, with reference to OECD countries. In the first stage we investigate the determinants of demand for electric consumption and in the second stage we test the impact of demand for consumption on capacity. Our study shows that the direct impact on capacity growth is mainly of GDP growth which is a China-specific effect, and load factor which is a non-China specific effect. Capacity investment is driven by demand for power relative to the use of existing capacity. Furthermore, power prices and the industrial structure of an economy are the indirect determinant of capacity via their impacts on demand. The industrial structure is particularly strong for affecting power demand in China, since the country has quickened industrialization with more investment in heavy industry that further fuels up demand for power and so capacity.

On the determinants of electricity power losses: empirics from Ghana

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“…Since then, researchers have examined energy related issues under broad topics such as energy‐growth nexus (see Adom, ; Kwakwa, ; Kwakwa et al ., ); energy and environmental degradation (see Kwakwa and Aboagye, ; Kwakwa et al, ; Kwakwa and Adu, ); determinants of energy consumption (see Adom and Bekoe, ; Kwakwa et al ., , ); and energy supply (see Adom, ; Kwakwa, ; Liu et al . (). An arguable conclusion one makes from appraising the literature is that these issues have been under researched in developing countries especially those from the African continent.…”

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