ELECTRICITY CONSUMPTION AND ECONOMIC-GROWTH - A CASE-STUDY OF CHINA

This study examines the relationship between electricity consumption and economic growth in China during 1950-80. The results show that the income elasticity of electricity consumption is significantly greater than one ranging from 2.33 to 2.72, and the electricity-GDP ratio, or electricity intensity, has increased over time with the growth rate of 7.3% pa during 1950-80. These results suggest that the policy makers in China should pay more attention to electricity conservation policies and structural changes in production.