Investment Analysis of Electricity Industry Based on Cointegration Model

Abstract:

By undertaking the cointegration theory with annual data over the period 1978-2008 in China, empirical studies on the relationship among power investment, electricity consumption and economic growth is carried out, and long-term equilibrium model and short-term vector error correction model are established; Granger causality test indicates that power investment is not the Granger causality of electricity consumption, while there exists bidirectional Granger causalities between electricity consumption and economic growth.

• Periodical: Advanced Materials Research (Volumes 433-440)
• Pages: 2400-2405
• DOI: https://doi.org/10.4028/www.scientific.net/AMR.433-440.2400
• Online since: January 2012
• Authors: Xiao Ying He, Hui Zhou
• Keywords: Cointegration Analysis, Economic Growth, Electricity Consumption, Power Investment, Vector Error Correction Model

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