Do shocks to electricity consumption generate persistent effect? Evidence from Hunan Province in China

Abstract

This study explores the stationary property of electricity consumption for Hunan province in China over the period January 2013 to April 2023. Our analysis uses the panel stationarity tests, which take into account the factor structure and structural breaks. The results indicate supportive findings of non-stationarity in Hunan province. The results imply that external shocks yield a permanent effect for electricity consumption in Hunan province. These findings shows that governments should adopt policies to mitigate external shocks to electricity consumption in order to achieve electricity market stability and long-term sustainable development.