An empirical study on the relationship between electricity consumption and economic development in different industries: the case of Yunnan Province, China

Abstract

Many scholars have clearly demonstrated a significant correlation between electricity consumption and economic development. However, numerous studies have focused primarily on using various models and algorithms to analyze this relationship within a region, often neglecting the indicative role of electricity consumption by different industries in regional economic development. To better understand the relationship between industrial electricity consumption and regional economic development, and to explore its indicative role, this study examines Yunnan Province, China. The study collects annual electricity consumption data for 11 industries from 2011 to 2023, along with corresponding economic development data. Using statistical methods such as principal components analysis (PCA), Pearson correlation analysis, and linear regression models, the study deeply analyzes the relationship between electricity consumption by different industries and economic development within the region, and their indicative role on economic development. The results show that transportation, warehousing, and postal services (TWP), along with public utilities and management organizations (PM), are key industries indicating regional economic development. The indicative equations for Regional GDP (100 million yuan) are: Y = 72.66X + 502116.97 (TWP) and Y = 154.19X - 388931.23 (PM). The indicative equations for GDP per capita (yuan) are: Y = 72.66X + 502116.97 (TWP) and Y = 154.19X - 388931.23 (PM). Based on the analysis results, this study proposes four recommendations for electricity allocation and economic development in Yunnan Province, which can serve as a reference for future related research.