A Spatial Econometric Analysis on the Relationship between Power Consumption and Regional Economic Development

Abstract

This paper applies the spatial econometric model to examine the relationship between power consumption and real GDP for China. Our estimation results indicate that the regional economics development level is influenced not only by "home" power consumption and economy but also the neighboring energy consumption. In order to keep the remarkable growth of China economy, the government should speed up the nation-wide interconnection of power networks and upgrade interregional distribution grids.